The cryptocurrency market is experiencing a significant correction since the rally last year, primarily impacting major altcoins such as Polygon and Near Protocol.
Polygon: Testing a Multi-Year Support Zone
The weekly chart for Polygon shows consolidation within a three-year descending triangle pattern. The recent downtrend that started December 2 was triggered by a rejection at the upper resistance of the triangle at $0.76. The current price is trading around $0.37 in the major support zone between $0.30 and $0.41. Historically, this level has acted as a rebound zone, indicating a potential breakout if support holds.
Near Protocol: Retesting Breakout Level
Near Protocol has already broken out from its long-term descending triangle, but the recent market correction dragged its price from $8.24 to the current $4.14. This decline acts as a retest of the breakout line and major horizontal support zone. Successfully holding this level might lead to a price rebound to recent highs.
Is a Bounceback Coming?
Both Polygon and Near Protocol are trading at key support zones. The next steps are dependent on Bitcoin's dominance trends. If dominance declines, altcoins may recover. Otherwise, pressure might continue.
The current position of Polygon and Near Protocol at crucial levels might signal potential changes shortly, depending on market conditions.
