Polygon Price Prediction: Is POL Poised To Hit A New Low?

Key Insights:

• Polygon  has successfully retested its recent breakdown and is now poised for a new low.
• Short positions worth $6.41M have been built, betting that the POL price won’t reach the $0.2089 level.
• Exchanges witnessed an outflow of over $1.85M worth of Polygon tokens, indicating potential accumulation.

Amid the ongoing bearish market sentiment, Polygon price predictions are being revised since it lost a key support level.

Over the past 30 days, Polygonlost 29.31% of its value and is yet to hit the brakes on this downturn.

Polygon Price Momentum

At press time, POL was trading near $0.1724 and had registered a price rise of over 0.90% in the past 24 hours.

Meanwhile, during the same period, the asset’s trading volume jumped by 135.83%. Combined, these 24-hour metrics signal heightened volatility.

Polygon Price Prediction 

With POL’s recent price drop, it has confirmed its potential for further downside momentum.

According to expert technical analysis and Polygon price prediction, POL recently lost its crucial support level of $0.19 and has also successfully retested the breakdown level.

Following the retest, the asset has continued to move downward and is heading toward the next support level.

Based on the recent price action and historical momentum, there is a strong possibility that POL could fall to the $0.15 level in the coming days.

However, if market sentiment shifts, it could also reach a new high.

In addition to the bearish price action, technical indicators such as the Relative Strength Index (RSI) and the 200-day Exponential Moving Average (EMA) on the daily time frame further support its bearish outlook.

Mixed On-Chain Metrics 

With this bearish outlook, the sentiment among traders has turned bearish, as reported by the on-chain analytics firm CoinGlass.

On-chain data revealed that, over the past 30 days, traders were over-leveraged at $0.1783 on the lower side and $0.2089 on the upper side.

At these levels, traders have built $1.16 Million worth of long positions and $6.41 Million worth of short positions.

These significant bets on the short side indicate that traders have a strong bearish belief, and expect that the POL price won’t cross the $0.2089 level anytime soon.

However, the POL price may enter a free fall once traders’ positions at the lower level are liquidated.

$1.85 Million of POL Outflow 

While examining investors’ and long-term holders’ activity, it has been found that they have been continuously accumulating the asset.

Data from spot inflow/outflow revealed that exchanges have registered an impressive outflow of $1.85 Million worth of POL tokens over the past three days.

This outflow indicates potential accumulation and could lead to buying pressure.

However, despite the current outflow, the prevailing bearish market sentiment makes it difficult for POL to rally in the short term.

When Will Polygon Price Recover?

On-chain metrics and Polygon price prediction based on technical analysis suggests POL is bearish in the shorter time frame.

However, on the higher time frame, investors are hopeful that the price will rebound once market sentiment improves and the tariff war subsides.

For now, to witness upside momentum, the POL price needs to breach the upper level of $0.2089 and liquidate $6.35 Million worth of traders” short positions.