Polygon (POL) is currently fighting for its survival, with its value plummeting 80% from its all-time high of $1.29. The cryptocurrency is now at a critical juncture, with $0.28 serving as the key support level that could determine its future.
Declining Momentum and Market Pressure
Polygon has been on a steady decline, losing 55% since its post-election surge past $0.70. The Relative Strength Index (RSI) is showing overbought signals, which led to profit-taking. However, what’s more concerning is the lack of a strong recovery—this highlights a significant issue: a lack of fresh capital entering the market. As a result, there is a growing supply-demand imbalance, exacerbated by decreasing trading volume. Once peaking at $1.7 billion, Polygon’s volume has now dropped below $500 million, signaling weakened investor confidence amid broader market de-risking.
Key Support Levels: $0.50 and $0.28
The $0.50 mark is crucial for Polygon, as approximately 57.8K addresses are underwater here, holding 8.39 billion POL coins. If this level fails to hold, the next significant support comes at $0.28. This level has shown resilience, with a 60% rebound during the Trump pump in November. However, Polygon’s fate may depend on whether whales—who control 81% of the entire network with 8.18 billion POL coins—decide to step in or offload their holdings.
Also Read: Cardano, Polkadot, and Avalanche Face Major Sell-Off: Is This a Buying Opportunity?
Outlook: Can Polygon Stage a Comeback?
Polygon’s survival hinges on fresh capital inflows, but network growth has slowed significantly. If the $0.50 support fails to hold, the chances of a recovery diminish, and a further drop seems inevitable. The $0.28 support is the last line of defense. If buyers fail to emerge at this critical point, Polygon risks falling into an irreversible downward spiral. The clock is ticking, and investors are waiting to see whether a rebound is possible or if this marks the end of the road for POL.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
