Despite Bitcoin's solid trend, many altcoins have faced corrections. Polygon (POL) is challenged as it tests a three-year support.
Polygon Support Analysis
Polygon, formerly known as Matic Network, has seen a correction of over 50% in the past 60 days, reaching a critical long-term support level. The weekly chart shows consolidation within a descending triangle that began forming after the 2021 bull run. The latest downtrend began on December 2, 2024, following a rejection from the triangle's upper resistance at $0.76, leading to a support zone between $0.28 and $0.41.
Current Market Situation
Currently, POL trades around $0.31. Breaking above the 25SMA would enhance the chances of a breakout from the multi-year descending triangle. However, failing to sustain the lead of major altcoins could result in a further fall to the $0.16 mark.
Future Prospects for POL
The key support is demonstrating resilience, yet much will depend on the recovery of Ethereum (ETH) and broader crypto market sentiment. If ETH continues to recover, it may provide the momentum needed for POL trades to confirm a reversal and breakout.
Polygon reaches a critical support level that will determine its future trajectory. Market sentiment and ETH performance will play a key role in the coming weeks.
