Amid ongoing bearish sentiment, can Polygon (POL) gear up for a bullish reversal? An analyst has even projected a 2,387% increase for POL.
As one volatile week comes to a close, the crypto market is poised for a new week of explosive potential. Last week, multiple altcoins managed to end the week on a recovery note despite the failure to register a positive weekly gain.
However, Polygon (POL) is struggling to maintain crucial support levels. With a 14.36% drop last week, the altcoin is under $0.35. An analyst has highlighted a potential reversal, albeit with a 15% downside risk. Let’s take a closer look at the POL price analysis and the prospects for a reversal.
Analyst Highlights Triangle Breakout Chances
Ali Martinez, a well-known crypto analyst, teases a bullish comeback possibility for Polygon using the weekly logarithmic chart. In his recent X post, Martinez paints a bullish target for Polygon at $0.89, a potential gain of 167% from current levels. Meanwhile, the analyst even projected a secondary target of $8 for POL, representing an astonishing 2,387% increase.
In the weekly chart, Martinez identifies a long-standing resistance trendline that has been capping bullish growth. This trendline is characterized by POL’s decline from the peak of $2.92 in December 2021 to the current price of $0.3277.
Additionally, the trendline forms a descending triangle pattern, with baseline support at $0.28, which coincides with the 61.80% Fibonacci retracement level.
According to the Fibonacci retracement levels on the weekly chart, the nearest resistance is at 78.60%, positioned at $0.79, aligning with the overhead trendline. A breakout above this trendline could release the momentum currently trapped within the triangle.
Currently, the Polygon price trades at $0.3277, with an intraday pullback of 0.82%. It is currently above the 61.80% Fibonacci level at $0.2873 and teases a potential turnaround to challenge the overhead resistances.
While the altcoin will encounter multiple resistance factors, a broader market recovery could enhance the chances of a breakout. As a precaution, the analyst recommends setting a stop loss at $0.28, the 61.80% Fibonacci level, indicating a 15% downside risk.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
