Polygon Faces 81% Drop as Bearish Pressure Intensifies

Polygon (POL) is currently under severe bearish pressure, with analysts warning of a potential sharp decline. Crypto expert Ali Martinez has predicted that POL could drop to $0.04, following its breach of the $0.32 support level. This prediction is based on a descending triangle pattern that POL has been following for four years, indicating a prolonged bearish momentum. The current trading price of POL is $0.2123, and if the downward trend continues, it could reach the predicted low of $0.04, alarming traders who are already facing substantial losses.

The loss of crucial support levels has pushed POL into a bearish market structure, with the price forming lower highs and signaling increasing selling pressure. Despite some resilience in the broader market, POL remains in a downward spiral, unable to recover from its current losses. Additionally, the decline in open interest in Polygon’s futures contracts suggests weak investor confidence and weakening crypto market trends. The reduction in buying and selling activity indicates that traders are stepping away, awaiting further depreciation.

Macroeconomic factors also influence crypto market trends. The upcoming U.S. Federal Open Market Committee (FOMC) meeting has added another layer of uncertainty. With a high probability that the Federal Reserve will maintain interest rates unchanged, traders are closely monitoring Fed Chair Jerome Powell’s speech for future financial policy hints. Even if the Fed adopts a dovish stance, it may only provide a temporary remedy to the broader market, while Polygon’s downtrend is likely to persist.

Despite the bearish outlook, Polygon is undergoing a significant upgrade. The transition from MATIC to POL has officially started on Ethereum’s main net, marking a crucial step in its evolution. This upgrade is expected to be seamless for Polygon PoS users, zkEVM participants, and MATIC holders. However, this transition has yet to positively impact POL’s price, as the token remains under selling pressure. If Polygon can leverage network improvements to enhance adoption and scalability, recovery may be possible. But at the moment, investor sentiment remains weak, and without a more favorable Ethereum forecast, Polygon may struggle to regain momentum.

Polygon’s technical indicators continue to be bearish, and market sentiment continues to decline. Without a strong catalyst, the Polygon price decline may persist. Analysts warn that if the downtrend continues, POL could fall closer to the predicted $0.04 level. Investors should closely monitor market trends, macroeconomic shifts, and Polygon’s upgrade progress. While crypto markets remain volatile, recovery remains uncertain. Polygon faces a challenging path ahead, and traders should brace for continued volatility in the crypto market trends.