Polygon Price Outlook: Polygon’s price has been in a pullback phase, showing a clear downward trend on the 4-hour chart. This pullback has created a series of lower highs, forming a short-term resistance trendline that’s been holding the price down. Polygon is currently facing its fifth bearish reversal, reflecting continued selling pressure.
Polygon Price Breakdown
Polygon recently broke below the 23.60% Fibonacci level at $0.4901, and has now dropped below the psychological $0.50 mark, currently trading at $0.4874. This represents a 5.16% correction for the day, following a smaller 2.73% drop the night before. These sharp declines indicate that the market sentiment is leaning bearish in the short term.
The 4-hour RSI (Relative Strength Index) had risen during the recent recovery, but the pullback has caused it to fall below the 50% mark. Additionally, the 100 and 200 EMA (Exponential Moving Average) lines have crossed over in a bearish direction, reinforcing the negative outlook for Polygon in the near term.
Polygon Price Growth Despite Setbacks
Even with the short-term price correction and a 52% drop in year-to-date performance for 2024, Polygon has achieved significant growth. The network has added the highest number of “super users” in the crypto space this year. Super users are defined as those making 100 or more transactions, and Polygon saw 1.5 million new super users in 2024, with monthly transactions totaling 867.7 million. This growth shows the network’s adoption is strong, despite the current price struggles. Polygon is currently outpacing Optimism, which recorded nearly 800 million super-user transactions.
Supply and Demand Zones of Polygon
In terms of supply and demand, Polygon is facing an immediate supply zone between $0.4875 and $0.5016, with 23.8 million tokens held by 2,330 addresses. The support zone is between $0.47 and $0.4847, with 9.11 million tokens held by 3,080 addresses. The large difference between the supply and demand volumes suggests that the bearish trend could continue in the near future.
Polygon Price Targets
As Polygon’s price continues to fall, it may retest the $0.4678 support level. If this level breaks, the next support target is $0.4127. Although there’s still a chance for a bullish reversal, the bearish momentum is likely to persist for now.
However, if a bullish reversal occurs from the $0.4636 support level, this could spark a rally, particularly if the RSI shows signs of divergence. If that happens, the price could rise toward the 50% Fibonacci level at $0.5768 before the end of 2024, bringing hope to bullish traders.
