In this ongoing market downturn, the Polygon ecosystem (POL) has formed a strong bearish price action, suggesting that a massive price decline is on the way, as reported by a prominent crypto expert on X (formerly Twitter).
Today, January 30, 2025, while examining the current outlook, the expert noted that POL is on the verge of a 44% price drop, potentially reaching the $0.23 level.
However, this post on X has gained widespread attention from the crypto community due to its massive price drop prediction. The potential reason for this prediction is the bearish market sentiment and the formation of bearish price action on the daily time frame.
According to expert technical analysis, with the recent price drop, POL has breached the support of its descending triangle price action pattern and has successfully retested the breakout area. Based on historical price momentum, if POL holds below the $0.45 level, there is a strong possibility it could drop by 30%, reaching the $0.29 level.
At present, POL is trading below the 200 Exponential Moving Average (EMA) on the daily time frame, indicating that it is in a downtrend. On the negative side, POL’s Relative Strength Index (RSI) stands just above the oversold area, suggesting that the asset has enough room to continue its price drop in the future.
Looking at the bearish price action and price prediction, investors and long-term holders have been seen dumping their tokens, as revealed by the on-chain analytics firm Coinglass. Data from the spot inflow/outflow shows that exchanges have witnessed an inflow of $2.56 million worth of POL in the past 24 hours.
In the cryptocurrency landscape, inflow refers to the movement of assets from holders’ wallets to exchanges, which potentially signals dumping and sell-offs. However, it has the potential to create selling pressure and lead to further price decline.
POL is currently trading near $0.40 and has witnessed a price surge of over 2.75% in the past 24 hours. However, during the same period, its trading volume jumped by 15%, indicating lower participation from traders and investors compared to the previous day.
The recent rise in the bullish momentum has elevated the markets above the bearish captivity…
The PayPal USD (PYUSD) stablecoin is fast approaching the $1 billion market cap milestone. The…
The crypto market is in a pivotal phase, marked by trend reversals, mixed short-term performance…
After examining the major centralized exchange tokens like BNB, OKB, CRO, and others, MultiBank's MBG…
The crypto market is witnessing some cautious declines today, with the total market capitalization dropping…
Compared to the other cryptos, XRP has been displaying enormous strength as the bulls have…
