Polygon's POL token continues to experience a price decline, but charts indicate signals that may suggest an upcoming rise.
Decline of POL Token Price
The POL token has fallen by 9.5% in the last 24 hours, trading at $0.225, with a market capitalization of $2 billion. This decline continues the trend over the past thirty days and marks a decrease of 13.46% from its July high. Major factors include profit-taking by investors following the recent rally of the token along with Bitcoin and Ethereum.
Possibility of Renewed Investor Interest
Recent developments in the Polygon ecosystem may attract investor attention. Firstly, the Polygon team has announced that it has become the blockchain infrastructure behind BeToken, Spain's first fully EU-regulated security token offering. If this model gains broader adoption in the EU, it could increase the volume of tokenized assets and strengthen long-term demand for the POL token.
Technical Analysis and Potential Bullish Reversal
The chart shows the formation of a double-bottom pattern, typically regarded as a bullish reversal signal. Additionally, a golden cross has formed with the 20-day and 50-day simple moving averages crossing, indicating a shift in short-term momentum towards the buyers. A breakout above the resistance at $0.2768 could confirm further upward movement.
While the POL token currently shows a decline, positive technical indicators and recent news regarding the Polygon ecosystem may create conditions for potential growth in the future.
