Polygon (POL) is moving in a neutral to bullish setup after a prolonged downtrend. The token has currently escaped from a falling wedge pattern and a double bottom formation. Meanwhile, a bullish divergence on the daily Relative Strength Index (RSI) suggests a shift in market momentum.
At the time of writing, POL is trading at $0.1076, supported by a 24-hour trading volume of $48.14 million and a market capitalization of $1.13 billion. Its price has surged by 2.76% over the last 24 hours and 1.2% over the last week.
Source: CoinMarketCap
POL Set for Bullish Reversal After 1.5-Month Downtrend
After the 1.5-month downtrend, it appears Polygon (POL) could be headed for a potential bullish reversal. POL recently escaped the 85-day falling wedge pattern, a chart pattern known to reverse trends. Looking at the charts, it appears that POL is in an oversold condition on the weekly charts, with the Ichimoku chart pointing out the unstable zone, signifying a potential recovery.
On the technical side, there are also indicators of a bullish outlook for POL. There is a double bottom formation taking shape on the weekly chart, and this indicates a weakening in the selling pressure. At the same time, a bullish divergence is taking shape on the daily Relative Strength Index (RSI), and this indicates a reversal in market momentum even as the price falls.
Source: Crypto_jobs
Although all these signs indicate positive developments, it is important to exercise caution. The medium-term levels of resistance that must be broken successfully include $0.1210 and $0.1290, and increased buying volume is also required for a positive trend indication. Until such a trend is noted, traders may witness restricted gains.
Also Read: Polygon Price Outlook: Can POL Rebound Toward the $0.1300 Target?
Technicals Hints Reversal as Price Holds Above $0.10625
The chart displays that POL’s price is just above the key bottom price of $0.10625. Currently, the price is trending below the longer-term EMAs (100 & 200 EMAs) but also hovering above the short-term EMAs (20 & 50 EMAs), suggesting a neutral and bearish market environment. Support is offered by 0.10625, which is a key level to watch in coming sessions.
Source: TradingView
The RSI is currently at 58.27, reflecting a neutral to bullish outlook, which is neither overbought nor oversold. As the RSI is above 50, it reflects mild support for the upside momentum. There are no critical levels on either the upside or downside that could affect the price action of the token.
Also Read: Polygon (POL) Price Outlook: Momentum Builds Toward $0.220 Resistance Level
