Polygon (POL) Falling Wedge Forms: Is a Breakout Above $0.17 Next?

On Thursday, January 22, Polygon (POL) traded around one of its crucial support levels as traders monitor whether its market structure in the high timeframe can continue to hold. Polygon is currently trading at $0.1336. The token has declined by 1.82% in the past 24 hours. 

The trading volume has reduced by 23.18%, and the weekly losses are $10.62. Traders followed the tightening structure that developed after months of downside pressure.

Source: CoinMarketCap

Polygon Forms Long-Term Falling Wedge Near Key Levels

Analyst Crypto Patel highlighted that POL remains in a long-term falling wedge. He indicated that there is strong demand in the range of $0.13 to $0.10, which has been able to hold recent losses. He also noted that the technical structure will hold as long as POL closes above $0.097.

According to Patel, POL is tightening around multi-year lows. He defined the wedge as a growing pattern that usually follows before a reversal. He reported that a confirmed shift will take a prolonged break over $0.17.

Source: X

Analysts identified the upside target at $0.286, $0.435, $0.704, $1.20, and $2.00 +. He added that the zone provided good risk positioning when the demand remained to support the lower band. He emphasized that a closing price lower than $0.097 nullifies the structure.

Analyst DyorNetCrypto revealed a weak regression trend with a trend score of -33. He noted that POL declines lower than essential moving averages and still causes a Supertrend sell signal. He has pointed out technical weaknesses in recent sessions.

Also Read: Ethereum (ETH) Price Faces Crucial Test as Bulls Attempt to Defend

He identified the closest support at $0.1291. A decline reveals Fibonacci levels of $0.1135 and $0.0936. He further said that POL could experience a rebound of $0.1291 to reach its target of $0.1427.

Source: X

RSI and MACD Show Persistent Bearish Pressure

The Relative Strength Index (RSI) of Polygon is 48.78, which indicates weak purchasing power. The RSI moving average is 60.36, which indicates continuous pressure. These indicators coincide with consolidation over long periods around important supports.

The Moving Average Convergence Divergence (MACD) line stands at 0.0036, and the signal line is 0.0063. The histogram stands at -0.0027, indicating weakening momentum as bearish pressure continues to fade. 

Source: TradingView

Polygon is currently trading around its most important support zone of this cycle. Analysts are closely monitoring the breakout level at $0.17. The direction of the market will depend on the first broken initial threshold.

Also Read: Polygon (POL) Sees $1.26M Staked in Two Days as Price Consolidates Near $0.14