Cryptocurrency enthusiasts are feeling the pinch as Polygon’s Ecosystem Token (POL) recently tumbled below key moving average lines on December 19. This downturn signals a potential for further decline, leaving many to wonder where the support will come from.
Current updates show that POL is attempting a correction upwards, inching closer to the often-watched 50-day simple moving average (SMA). However, the outlook remains bleak. If buyers can’t muster enough strength to keep the price above this SMA, expect a rush of selling pressure. Following a sharp drop on December 9, POL tested the 50% Fibonacci retracement level, indicating that it may plummet to $0.27, a significant level if the downward trend continues. Right now, POL sits at $0.50.
Analyzing the technical indicators reveals a rather challenging picture for POL. Owning to the breakdown experienced on December 19, price bars have nestled below the moving average lines. While POL is presently making a slight correction, it’s hitting a wall at the 50-day SMA. Observations from the 4-hour chart show price bars trapped between moving average lines, signaling a period of range trading. The downtrend of these lines only adds to the bearish sentiment.
Resistance levels currently loom at $1.20, $1.30, and $1.40, which seem daunting in light of the current situation. On the flip side, support is found at $0.60, $0.40, and $0.30, with many eyes glued to the $0.40 mark. Should it break this support, it could become a slippery slope.
So, what’s next for Polygon Ecosystem Token? If the price stays confined below the moving average lines, additional dips appear inevitable. Indicators suggest that if the bulls don’t prove their strength today by holding above the 50-day SMA, the bears are likely to gain an upper hand, pushing prices down towards that critical support level of $0.40.
As we monitor this situation, it’s vital for investors to remain cautious. Making informed decisions is key. After all, in the unpredictable crypto market, staying updated and aware of potential price movements is essential for successful trading. Always remember to conduct thorough research before considering any investments!
