- Polygon (POL) signals short-term bullish potential after breaking above the descending channel midline on the 12H chart.
- Strong buyer defense at a well-tested support zone strengthens price stability and limits downside risk.
- Upside targets align at $0.13 and $0.15, with higher resistance levels near $0.25 and $0.29.
Polygon (POL) is moving in a downward direction supported by the technical indicators but still hovering above the key support level.
However, the crypto analyst, Jonathan Carter, highlighted that Polygon (POL) is hinting at a possible reversal in trend after a breakout above the middle level of a bearish channel on the 12-hour timeframe. The breakout can be considered an indication that sellers are losing momentum, with buyers taking control of the market. The move is a relief after a protracted bearish counter-trend phase.
A strong support level in price action is evident, where a tested support zone holds strong as buyers have consistently prevented a downside move. Being above this support level gives POL a solid foothold in the market. The move reinforces bullish sentiment, reducing concerns that the price surge is a temporary rebound.
Source: Jonathan Carter
A more widespread recovery may be in store if POL continues its momentum with strength above the center line of the channel. Short-term resistance milestones are set at approximately $0.13 and $0.15, with additional levels at $0.18 and $0.21. Following a stronger path, additional milestones at $0.25 and $0.29 may be achieved, with a breakthrough at the center line being the decisive factor.
Also Read: Polygon (POL) December Setup: Can POL Hold the $0.35 Support for a Year-End Rebound?
Polygon (POL) Technicals Suggests a Cautious Outlook
From the technical perspective, Polygon (POL) is in a definite downtrend on the weekly chart. The asset is trading in the $0.11-$0.12 region after being unable to hold above the moving average ribbon on multiple occasions. The 20-week, 50-week, 100-week, and 200-week SMAs are all placed well above the current price.
with stacked resistance regions around $0.20, $0.23, and $0.42. Such a movement confirms strong bear dominance in the market since each attempt at a reversal is repelled below previous highs. The latest candles in this chart continue to show a downtrend with further selling pressure, failing to establish a stable level.
Source: TradingView
Momentum indicators generally favor a tentative outlook. RSI (14) is in the oversold zone at just above 29 but below the signal line, indicating very strong bear pressure with potential for a short-term bounce. MACD remains in the red, indicating that bear momentum is still in play. A marked trend change can come into consideration if key moving averages are solidly reclaimed.
Also Read: Polygon (POL) Eyes $0.145 Breakout as Trading Volume Surges
