The Polygon (POL) cryptocurrency is successfully breaking out of a descending triangle, indicating a possible end to the latest downtrend. Analysts believe this creates a strong play for a rally, with a target of $0.69.
Breaking Out of a Prolonged Downtrend
A descending triangle is the bearish continuation pattern that normally occurs in downtrends. Recently, Polygon's price action was restricted within this pattern but has now broken out, signaling a potential trend reversal.
Recent Market Performance
On January 1, 2025, POL was valued at $0.4603. Over the last 24 hours, its price increased by 2%, and trading volume surged by 75.96% to $20.64 million, indicating growing demand and confidence in the asset. However, POL remains below its 50-day, 100-day, and 200-day SMAs.
Key Resistance Level at $0.50
The breakout has taken POL above the 61.8% Fibonacci retracement level, a key resistance at $0.50. Polygon first needs to clear resistances at $0.55 and $0.60 for the bullish trend to be sustained.
Having broken out of the descending triangle, Polygon (POL) shows signs of a potential continued rise. However, significant resistance levels must be overcome to confirm the upward trend.
