Polygon (POL) has shown a positive reaction at the psychological support zone around $0.10. This price level was first tested in early January and continued to be challenged last weekend before surging 15.25% on Monday, January 2nd.
Although this recovery movement signals short-term optimism, it is still not enough to reverse POL’s prolonged downtrend. Notably, the rally in January coincided with an important milestone when the network burned up to 3 million POL in a single day. The token burn activity remained strong throughout the month, with a total of 25.7 million POL removed from circulation — one of the largest monthly burn totals to date.
However, the overall market sentiment remains dominated by selling pressure on Bitcoin (BTC), which poses obstacles to Polygon’s prospects.
Is POL optimistic or pessimistic?
On the weekly timeframe since December 2024, POL’s trend still leans downward. However, on the daily chart, the price has not clearly confirmed an uptrend or downtrend and mainly fluctuates within the range of $0.10 to $0.18.
Source: TradingView The $0.0987 bottom has been tested twice over the past month and remains solid. The OBV indicator also does not form lower lows, indicating a relatively balanced force between buying and selling. The recent rebound coincided with Bitcoin’s rally to around $79,000, showing that POL’s price still heavily depends on BTC’s movements.
Assessing the potential of POL’s recovery
In the short term, the $0.1325 zone has been an important support, while the area around $0.13 currently acts as a supply zone that could trigger selling pressure. Therefore, POL may continue to rebound toward this area, but a strong breakout remains limited as Bitcoin has not decisively broken above the $79,400 resistance.
Source: TradingView For long-term investors, maintaining the $0.10 zone is a positive signal, but it is still too early to confirm a new uptrend. Short-term traders should watch the price reaction around $0.13: if rejected, this could be a selling point; conversely, if it breaks through and holds above this level, POL could target $0.186.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Cryptocurrency Fear and Greed Index Rises to 61, Entering 'Greed' Zone
Gate News message, April 23 — The cryptocurrency Fear and Greed Index, a key sentiment indicator, has risen to 61 points according to the latest data, up 4 points from the previous day and entering the "greed" zone. The index, which ranges from 0 to 100 (with 0 signifying "extreme fear" and 100 indi
GateNews49m ago
Chainlink Price Tightens as $10 Resistance Holds Firm
Key Insights:
Chainlink trades between $8.5 and $10 as a tightening range signals volatility expansion, with buyers showing early strength through higher lows formation.
Open interest drops to $380 million while persistent spot outflows indicate cautious sentiment, though declining selling p
CryptoNewsLand59m ago
Shytoshi Kusama Returns to X After 13-Day Silence, Announces Saturday Community Discussion as SHIB Slides 1.8%
Gate News message, April 23 — Shytoshi Kusama, lead ambassador of the Shiba Inu ecosystem, returned to X today after a 13-day silence that began on April 9. He confirmed a scheduled community discussion for Saturday, signaling new developments ahead. His updated bio now reads: "Next up: Let's set a
GateNews1h ago
Shiba Inu Breakout Gains Strength as Volume Surges
Key Insights
Shiba Inu’s breakout above the triangle pattern gains strength as rising volume and higher lows confirm growing demand and a sustained bullish market structure shift.
Derivatives activity jumps significantly with volume surpassing $249 million while open interest rises,
CryptoNewsLand1h ago
XRP Price Near $1.45 as ETF Inflows Build Pressure
Key Insights
Institutional XRP ETF inflows reached $41.6 million over four days, lifting assets under management above $1.08 billion and strengthening market confidence.
XRP faces strong resistance near $1.45, where CoinGlass data highlights a short max
CryptoNewsLand1h ago
PENGU Eyes $0.009 as Open Interest Surge Signals Breakout
Key Insights
PENGU’s tightening Bollinger Bands and neutral RSI show controlled accumulation, indicating momentum buildup that typically precedes significant price expansion in volatile markets.
Open interest climbed despite falling prices, reflecting new capital entering positions and
CryptoNewsLand1h ago
