Polygon (POL) Token Establishes $0.30-$0.36 Trading Range After Dip
by Oliver Dale · BlockonomiTLDR
- Polygon (POL) currently trading at $0.329 after dropping to $0.306
- New trading range established between $0.30 and $0.36
- Technical indicators show bearish trend with 21-day SMA below 50-day SMA
- Key resistance level at $0.36, support at $0.30
- Bulls attempting recovery above $0.32 after recent dip
Polygon’s native token (POL) has established a new trading range between $0.30 and $0.36, marking a shift from its previous trading zone.
The cryptocurrency, currently valued at $0.329, recently tested lower levels before showing signs of recovery within this newly defined range.
The price action began when POL broke below its previous trading range of $0.36 to $0.38. This movement triggered a cascade that pushed the token to test support at $0.306, a level that has since become crucial for traders watching the asset’s performance.
Technical indicators paint a clear picture of the current market structure. The 21-day Simple Moving Average (SMA) remains positioned below the 50-day SMA, creating what traders typically refer to as a bearish crossover.
This technical formation suggests continued downward pressure on the asset’s price.
Looking at the daily chart, price bars continue to trade below both moving average lines, reinforcing the bearish sentiment in the market.
However, the formation of Doji candlesticks on October 1 introduced a brief pause in the downward momentum, effectively delaying the downtrend for approximately three weeks.
The 4-hour timeframe reveals more detailed price action, showing how sellers gained control after breaking below the $0.36 support level. This breakdown led to the current situation where bulls are attempting to establish control above the $0.32 level.
Recovery efforts are currently underway, with buyers stepping in at lower levels to initiate upward momentum. The price has shown some stability above $0.32, indicating potential buyer interest at these levels. However, the market remains sensitive to selling pressure.
For upward movement to continue, POL needs to clear several technical hurdles. The first major resistance sits at $0.36, followed by the previously established high at $0.38. Breaking above these levels could open the path to testing the moving average lines.
Support levels have been clearly defined through recent price action. The $0.30 mark represents a critical support zone, with traders closely monitoring this level for potential breakdowns. A breach below this support could trigger further selling pressure.
The market structure suggests that $0.36 serves as a key resistance level for any potential recovery attempts. This price point aligns with previous support turned resistance and could prove challenging for bulls to overcome.
Trading volume patterns indicate active participation at current levels, with both buyers and sellers establishing positions within the new range. This activity suggests market participants are adapting to the new price parameters.
Market makers and traders appear to be respecting these newly established boundaries, with clear reactions occurring at both range extremes. The $0.30 level has attracted buying interest, while sellers have emerged near the $0.36 mark.
The token’s stabilization above $0.32 suggests a potential base forming at current levels. However, sustained trading below the moving averages indicates that bearish pressure remains a factor in the market.
Price action on the 4-hour chart reveals increased volatility near range boundaries, with quick reactions to both support and resistance tests. This behavior suggests active market participation at these levels.
Technical resistance levels extend higher at $1.20, $1.30, and $1.40, though these remain distant targets given current market conditions. Similarly, support levels below current price action sit at $0.60 and $0.40.
The most recent price action shows POL trading at $0.329, maintaining position above the recent low while market participants assess the sustainability of current levels.