Polygon (POL) Price Could Drop to $0.23, Analyst Warns

The price of Polygon (POL) may face a significant decline, potentially dropping to $0.23, according to analyst Ali Martinez. Currently trading around $0.40, the asset is showing technical signs of a possible sharp downturn. Martinez shared his analysis on X (formerly Twitter), highlighting concerning price patterns for the cryptocurrency.

The bearish outlook is linked to the recent transition from MATIC to POL, which has introduced uncertainty into the market. Additionally, declining trading volume and the loss of key support levels reinforce the negative scenario identified by analysts.

Polygon (POL) Price Could Plunge 44% to $0.23, Analysts Warn

Martinez based his prediction on technical analysis, emphasizing that POL remains in a downtrend after failing to break through critical resistance levels. A drop below the $0.38 support level could trigger a steeper decline, bringing the price down to the $0.23 range.

The analyst also pointed out that major POL holders are reducing their positions, increasing selling pressure. A lack of sufficient demand to absorb this sell-off could drive the price down even further.

Risks and Outlook for Investors

While the bearish forecast raises concerns among investors, some experts believe Polygon still has strong fundamentals. Institutional adoption and advancements in network technology could potentially reverse the downward trend in the long run.

Investors should keep an eye on upcoming support and resistance levels while monitoring potential recoveries in the crypto market. The broader sentiment in the sector and macroeconomic factors will also play a crucial role in POL’s future.

Ali Martinez’s prediction highlights the challenges facing Polygon but also underscores the importance of careful analysis before making investment decisions.