Elite Analyst Warns Polygon (POL) Price Could Crash 83.9% Soon – Here's Why

Polygon (POL) faces a substantial downturn as analysts predict a potential price collapse. The crypto recently broke below a multi-year support level, signaling further downside risk.

Crypto traders are used to seeing wild predictions, but even by that standard, one analyst's outlook for Polygon (POL) is stark. Technical breakdowns could send the crypto down 83.9%, he warns.

As Relative Strength Index (RSI) shows oversold conditions and traders are pessimistic, the analyst says the possibility of a steep decline can't be ruled out.

Key Takeaways

* A crypto analyst says that Polygon (POL) is setting up for a huge price crash.

* The analyst says the breakdown of a multi-year support level opens the door for a 83.9% drop.

* As technical indicators suggest more bearish trends, the crypto faces a crucial test.

Multi-Year Support Breaks Down As Bearish Trend Continues

Crypto analyst Ali (@ali_charts on X) says that Polygon is breaking out of a multi-year descending triangle. The bearish formation shows a prolonged downtrend as the crypto struggles to keep above a key support level.

“#Polygon ($POL) looks to be breaking out of a multi-year descending triangle, potentially setting up for a move toward $0.041!”

According to the analyst, the horizontal support zone around $0.32 has now been decisively broken. This confirms a bearish breakout, making further downward moves more likely.

With a descending triangle, a breakout occurs when the price moves fully outside of the triangle. In this case, the triangle has been forming since 2021, and a breakout to the downside is now complete.

As seen in the past, once a descending triangle breaks down, the measured move can be used to calculate the next support zone.

From the highest point of the triangle to the lowest point, the difference is about $0.28. Applying this to the breakout point at around $0.32, we can estimate the next support at $0.041.

At press time, POL is trading at $0.2546. A drop to $0.041 would mark a 83.9% decline from current levels.

Analyst Warns Of Further Price Drops As Technical Outlook Remains Bleak

The long-term structure remains firmly bearish. Lower highs continue to form, highlighting sustained selling pressure.

Moreover, there is no visible bullish divergence in the lower time frames. This lack of divergence suggests that technical indicators are not yet showing signs of an imminent recovery.

With market sentiment already weak and technical indicators suggesting further bearish trends, the potential for a steep decline in the coming weeks cannot be ruled out.

However, traders will be closely watching to see if there are any signs of a reversal. In particular, a reclaim of the $0.32 level, which has now become resistance, could shift the technical outlook more in favor of the bulls. Otherwise, further losses seem likely.