Key Insights:
- Polygon price prediction appears bearish, suggesting a potential 12% decline.
- The Polygon Ecosystem (POL) has failed to hold its key support level at $0.234 after a prolonged struggle.
- Approximately $5.06 Million worth of short positions have been built, anticipating that the POL price will not surpass $0.2495.
After a prolonged struggle near the key support level of $0.234, POL has failed to hold this level and appears poised for significant downside momentum.
Current Price Momentum
On May 4, 2025, following a 4.75% price decline, the Polygon price prediction turned bearish. At press time, POL was trading near $0.2298, having recorded a 0.55% decline in the past 24 hours. The asset appears to be undergoing continuous consolidation after a major breakdown.
During the same period, participation from traders and investors plummeted, leading to a notable 15% drop in trading volume. This decline in volume, along with the price, indicates weak bearish momentum.
Polygon (POL) Price Action & Technical Analysis
According to expert technical analysis, POL appears bearish as it breaks below the key support level of $0.234 and closes a daily candle beneath it. This breakdown on the daily timeframe seems to be attracting sellers, as it has opened the path for a potential price decline.
Polygon Price Prediction for Bullish and Bearish Side
As of now, POL is receiving local support at $0.227. Based on recent price action and historical patterns, if the asset breaches this support and closes a daily candle below the $0.225 level, the Polygon price prediction suggests that POL could experience a 10% decline, potentially dropping to the $0.20 level.
The Polygon price prediction suggests that the next move in POL’s price could depend on the asset’s upcoming momentum and whether it holds the local support. If it fails to do so, the Polygon price prediction indicates a potential sell-off; otherwise, a price reversal may occur in the coming days.
Price Reversal Signal
Despite the bearish price action following the breakdown of the key support level, POL’s technical indicators are flashing a potential price reversal signal.
On the daily timeframe, the asset’s Relative Strength Index (RSI) stands at 57, indicating moderate bullish momentum, though it is not yet in the overbought zone. The RSI at this level suggests that the asset is in a healthy uptrend with enough room to rise further before entering overbought territory.
Meanwhile, POL’s Chaikin Money Flow (CMF) indicator is in positive territory at 0.15, signaling strong buying pressure.
Both of these technical indicators appear to signal a price reversal, but a price drop below the local support could negate this reversal signal if it occurs.
Bearish On-Chain metrics
With all these factors, investors and traders have strongly bet on the bearish side, as reported by the on-chain analytics firm CoinGlass.
Data from spot inflows and outflows reveal that exchanges have witnessed an inflow of $141k worth of POL tokens in the past 24 hours.
Such an inflow of assets amid bearish market sentiment indicates a sell-off signal, potentially executed by investors and long-term holders to safeguard their capital in case the price declines further.
$5.06 Million Worth of Short Bets
In addition to the participation of long-term holders, traders are over-leveraged at $0.2255 on the lower side (support) and $0.2495 on the upper side over the past seven days.
During this period, traders have built $870k worth of long positions and $5.06 million worth of short positions. This metric clearly indicates that traders have consistently bet on short positions, hoping that the POL price won’t surpass the $0.2495 level.
When combining all these metrics, it appears that bears have been dominating, and there is a strong possibility that the asset could experience a notable price decline.