Polygon Price Decline: Will POL Crash to $0.04 Soon?

Polygon (POL) is under severe bearish pressure, with analysts predicting a huge decline. Crypto expert Ali Martinez warns that POL should drop to $0.04, following its break beneath the $0.32 support level. As market sentiment weakens and investor hobby declines, many are questioning whether the Polygon price decline will proceed or if it can recover. Technical indicators recommend further losses, developing uncertainty for investors.

Polygon’s Angles: Analyst Predicts Sharp Drop

Market analyst Ali Martinez has issued a warning about Polygon (POL), predicting a fundamental price crash. His evaluation shows that POL has been following a descending triangle sample for four years, signalling an extended bearish momentum that could lead to additional losses.

The $0.32 threshold degree was breached on February 25, triggering worries of an 86% price drop. With POL presently trading at $0.2123, the market outlook stays negative. If the downward trend continues, the cryptocurrency may additionally drop to $0.04, a scenario that has alarmed traders already facing vast losses.

Is the price declining?

The loss of crucial support levels has pushed the Polygon price decline into a bearish market structure. The charge has been forming lower highs, signalling growing selling pressure. While the broader market has proven some resilience, POL remains caught in a downward spiral, unable to recover from its current losses.

Another concern is the decline in open interest (OI) in Polygon’s futures contracts. Data from Coinglass suggests that OI has dropped from $119 million in January to $55 million currently. This suggests weak investor confidence and weakening crypto market trends. The reduction in buying and selling activity alerts that traders are stepping away, awaiting further depreciation.

Market Sentiment and FOMC Impact

As of now, the polygon is buying and selling at $0.2123, showing a 1% intraday gain; however, monthly and yearly losses remain steep at 35% and 78%, respectively. Effectively, The market stays weak, with no clear on-the-spot recovery.

Macroeconomic factors additionally influence crypto market trends. The U.S. Federal Open Market Committee (FOMC) assembly has added some other layer of uncertainty. With a 99% probability that the Federal Reserve will maintain interest fees unchanged, traders are monitoring Fed Chair Jerome Powell’s speech for future financial policy hints. Even if the Fed adopts a dovish stance, it may also only provide a temporary remedy to the broader market, while Polygon’s downtrend should persist.

Polygon’s Transition: Will the MATIC to POL Upgrade Help?

Despite the bearish outlook, Polygon is undergoing a most important upgrade. The transition from MATIC to POL has officially started on Ethereum’s main net, marking a crucial step in its evolution. The improvement is expected to be seamless for Polygon PoS users, zkEVM participants, and MATIC holders.

However, this transition has yet to positively impact POL’s price, as the token stays under promoting pressure. If Polygon can leverage network improvements to improve adoption and scalability, restoration may be possible. But at the moment, investor sentiment stays weak, and without a more suitable Ethereum forecast, Polygon may struggle to regain momentum.

What’s Next for Polygon?

Polygon’s technical indicators continue to be bearish, and market sentiment continues to decline. Without a strong catalyst, the Polygon price decline may additionally persist. Analysts warn that if the downtrend continues, POL could fall nearer to the predicted $0.04 level.

Investors ought to closely screen market trends, macroeconomic shifts, and Polygon’s upgrade progress. While crypto markets stay volatile, recovery stays uncertain. Polygon faces a challenging avenue ahead, and traders ought to brace for continued volatility in the crypto market trends.