Date: Thu, February 6, 2025 | 10:05 AM GMT
Despite Bitcoin (BTC) maintaining strong momentum, major altcoins have struggled to hold their ground. Following the November-December rally, many altcoins have faced steep corrections, with the latest drop exacerbated by tariff-related uncertainty caused by Donald Trump’s new policies, adding further bearish pressure.
One of the hardest-hit altcoins is Polygon (POL), formerly known as Matic Network, which has experienced a correction of over 50% in the last 60 days, bringing it to a crucial long-term support level.
Testing Its Three-Year Crucial Support Level
The weekly chart for POL reveals that the price has been consolidating within a three-year-long descending triangle, which started forming after its 2021 bull run. Since then, POL has retested both support and resistance multiple times within this structure.
The recent downtrend, which started on December 2, 2024, was triggered by a rejection from the upper resistance of the triangle at $0.76.
This decline has now brought POL into a major support zone between $0.28 and $0.41, with the current price trading around $0.31. Historically, this level has acted as a strong rebound zone, and if history repeats itself, POL could bounce from this support and target the 25SMA as resistance. Breaking above the 25SMA would increase the chances of a breakout from the multi-year descending triangle.
However, failure to hold this support could lead to a further decline, with $0.16 as the next key downside target.
Will It Bounce Back?
The current support level has historically acted as a strong rebound area, and POL is showing resilience. However, the next move will largely depend on Ethereum (ETH) and the broader crypto market sentiment. If ETH continues its recovery, it could provide the momentum needed for altcoins, including POL, to confirm a trend reversal and breakout.
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