Polygon Faces 40% Price Drop Risk Amid TVL Decline and Low Whale Activity
Bitcoin (BTC) has surpassed $105,000, while Polygon (POL) has seen a 2.09% increase to $0.40 in the last 24 hours. However, volatility and low network activity indicate a potential correction.
Polygon Price Analysis
- Polygon's price trend shows a pullback from a recent high of $0.76 to a low of $0.3825, indicating nearly a 50% decline in two months.
- A reversal from $0.3825 formed a Morning Star pattern with a 3.27% intraday gain.
- The ongoing pullback tests the 23.6% Fibonacci support level; maintaining this support could lead to a bullish recovery.
Price Targets
- A bullish reversal may target resistance at $0.46.
- If the trendline breaks, potential price extension could reach $0.6238.
- Closing below the 23.6% Fibonacci level at $0.39 could result in a 28% decline to $0.2916.
Bearish Outlook
- Analyst Ali Martinez predicts a possible 44% drop to $0.23, citing a descending triangle pattern and breach of crucial support at $0.41.
Network Performance
- Total Value Locked (TVL) on Polygon has decreased to $841.4 million from $1.337 billion in November 2024.
- Large transaction values dipped significantly; January 29 saw $62 million compared to $4.41 million a day prior.
- Historical trends show underperformance, with large transaction volume declining since the 2021 bull market.
Investors should monitor the $0.39 support level for future price movements.