Polygon (POL) Prices Could Crash to $0.04 as Bearish Pattern Deepens Market Concerns

A crypto market analyst has projected a steep decline in Polygon (POL) prices, sparking investor concerns. Market expert Ali Martinez predicted that POL could crash to $0.04

Crypto market analyst has projected a steep decline in Polygon (POL) prices, deepening investor concerns.

Market expert Ali Martinez predicted that POL could crash to $0.04 as it remains in a bearish phase. Investors have grown increasingly pessimistic as the token trades around $0.2, reflecting a significant downturn.

“[Polygon is] deepening its bear market,” said cryptocurrency analyst Ali.

“The descending triangle structure that was forming in $POL over 4 years continues to exist. We can see that the support level at $0.32 has been tested multiple times, and the price keeps forming lower highs.”

#Polygon $POL is undergoing a macro trend shift. Here's the target! pic.twitter.com/j5hFngszAn

According to the analyst, POL fell below its crucial support level on February 25th, thus validating a negative movement. The analyst forecasts an 86% downward movement that will drive POL to a value of $0.04.

The market shows signs of concern because POL has faced difficulties recovering its previous prices. After its minor single-day price increase, POL keeps descending through the market.

During the previous day’s trading period, POL maintained a static trend that fluctuated between $0.2035 and $0.2136 without showing indications of substantial buying activity. Market data reveals losses of 35% on a monthly basis and 78% throughout the year, with negative signs for additional downturns.

Declining OI Signals Waning Market Sentiment

The Open Interest value registered in the POL futures contracts has experienced a substantial decline since January, which reveals that market participants are losing their faith. Open Interest amounts on POL futures at Coinglass fell to $55 million in late January after reaching $119 million in previous estimates.

According to market indicators, traders have gone towards more secure trades, and investors exhibit lower interest.

Source: Coinglass

Market participant optimism disappears because derivative trading activity has decreased. Financial investors demonstrate restraint toward Polygon as achieving strategic price levels remains challenging. Most market analysts predict that Polygon prices will continue dropping until brokerage firms make new purchases.

Crypto community members remain burdened by negative outlooks in their market discussions. The crypto market contains nervous dealers who try to avoid additional losses, alongside long-term owners who review their investments. Market uncertainty grows because weak support levels beyond $0.2 fail to appear.

The upcoming Federal Open Market Committee (FOMC) session has activated crypto trading investors. By analyzing the CME FedWatch Tool, we can determine that the U.S. Federal Reserve has a 99% chance of letting interest rates stay as they are. The market directions heavily depend on Fed Chair Jerome Powell’s speech.