Polygon (POL) is currently facing strong bearish price action, with experts predicting a potential 44% price drop amid the ongoing market downturn. As of January 30, 2025, technical analysis indicates that the cryptocurrency may experience significant declines, with the price potentially falling to as low as $0.23. This bearish outlook is being driven by several factors, including a general downtrend in the market and the formation of a bearish pattern on Polygon’s daily price chart.f
Recent technical data shows that Polygon has breached a key support level in its price structure, specifically the descending triangle pattern. This pattern, when broken, often signals further downside momentum, as the asset fails to maintain upward price pressure. POL has recently retested the breakout zone, and according to historical trends, such retests have often been followed by extended price declines. If the token fails to stay above the $0.45 level, analysts suggest that Polygon could drop by 30% and head toward the $0.29 mark.
Polygon is currently trading below the crucial 200 Exponential Moving Average (EMA) on its daily chart, a signal that the asset is in a downtrend. The Relative Strength Index (RSI) is another key indicator to watch, and it currently stands just above the oversold region. This suggests that there is still significant room for Polygon to drop further before reaching a point of recovery or reversal. The RSI’s positioning implies that further downside movement is not only possible but likely, given the current market sentiment.
On-chain data also reflects a bearish outlook for POL, as recent inflows into exchanges have increased significantly. According to Coinglass, $2.56 million worth of Polygon tokens were transferred to exchanges within a 24-hour period. This surge in inflows is a typical sign of investors looking to exit their positions and is generally seen as a precursor to increased selling pressure. As more holders move their assets to exchanges, the likelihood of a price drop intensifies, reinforcing the bearish sentiment surrounding the token.
While Polygon has seen a slight price increase of 2.75% in the past 24 hours, trading volume has also surged by 15%. However, this volume spike suggests reduced participation from traders and investors compared to previous days. Lower participation can indicate a lack of confidence in the asset’s short-term outlook, which may contribute to a prolonged period of stagnation or decline.
In light of the current market conditions, the 44% price drop forecast for Polygon seems plausible, especially if the market sentiment remains weak. Investors are advised to exercise caution as the potential for further losses increases with every negative indicator. The combination of technical indicators, on-chain data, and declining investor sentiment points to a challenging period ahead for POL.
While the possibility of a recovery exists, it will largely depend on broader market factors and whether Polygon can manage to break through key resistance levels. Until then, the prevailing bearish trend suggests that POL is likely to face continued pressure. Investors looking to enter or exit the market should keep a close eye on the $0.45 level for signs of potential price reversals or further declines. As always, it is important for investors to remain cautious and consider the broader market conditions before making decisions regarding their holdings.
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