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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.