Polygon Gains 23% in 30 Days as Bearish Gartley Pattern Suggests Further Upside

Polygon (POL) has been experiencing a notable uptrend, gaining 23% over the past 30 days. This upward momentum is part of a broader bullish trend in the cryptocurrency market, with Ethereum (ETH) leading the way, up 19% over the past week and trading near $3,550. The recent gains in POL are not just a result of the broader market trend but also due to a Bearish Gartley harmonic pattern forming on its daily chart, which suggests potential further upside before any meaningful reversal.

The Bearish Gartley harmonic pattern is a technical analysis tool that indicates a continuation rally before hitting a reversal zone. On the daily timeframe, POL has been tracing out this pattern, starting at point X near $0.3342, dropping to point A, rebounding to point B, and extending to point C near $0.1636. Since then, POL has staged a sharp rebound and is currently trading near $0.2367, comfortably holding above its 100-day moving average ($0.2139), which has now turned into a key support level.

The next significant challenge for POL lies at the 200-day moving average ($0.2656), a major resistance level that has capped rallies in the past. If POL breaks above this level with strong volume, the token could rally toward the Potential Reversal Zone (PRZ), which spans from $0.2955 to $0.3342. These targets align with the 0.786 and 1.0 Fibonacci extensions, which typically mark the completion of Bearish Gartley structures. From current levels, this implies a potential 40% upside.

However, if POL fails to reclaim the 200-day moving average, a pullback toward the 100-day moving average ($0.2139) could follow before another breakout attempt. For bulls, holding above $0.2139 remains critical to sustain momentum during this harmonic completion phase. This pattern suggests that while there is potential for further gains, investors should be cautious and monitor the key support and resistance levels closely.

It is important to note that while the Bearish Gartley pattern indicates potential upside, it is not a guarantee of future performance. Investors should conduct their own research and consider all factors before making any investment decisions. The cryptocurrency market is known for its volatility, and past performance is not indicative of future results. Always exercise caution and due diligence when investing in cryptocurrencies.