Polygon’s price action over the past week has shown a moderate pullback following what initially appeared to be a decisive breakout above the $0.20 level. This dip does not necessarily indicate weakness; rather, it may represent a healthy retracement as the cryptocurrency prepares for a new upward move.
The overall price structure looks bullish on higher timeframes, especially after Polygon (POL) recently rebounded off the lower boundary of a long-term descending channel. According to a crypto analyst, Polygon could be on the verge of an explosive rally toward the $1 mark.
Classic Bullish Divergence Points to Imminent Breakout
According to technical analyst MasterAnanda on TradingView, the Polygon ecosystem token (POLUSDT) is currently flashing one of the strongest technical reversal signals in the form of a textbook bullish divergence on the 3-day chart. Price action hit a new low on April 7, 2025, but the Relative Strength Index (RSI) had already bottomed earlier in July 2024 and has since been forming higher lows.
This divergence between the price movement and the momentum indicator suggests that the downtrend may be losing steam. The bullish signal is further reinforced by a recent increase in trading volume and a broader recovery observed throughout the cryptocurrency market.
Upon closer examination of the 3-day chart, POLUSDT experienced a notable rebound after reaching its low on April 7. The price climbed steadily to $0.267 by April 22, only to encounter resistance afterward. This was followed by two successive bearish candlesticks that appeared to constitute a measured pullback, likely retesting the upper boundary of the descending channel.
This movement is significant, as retests of this nature frequently precede major breakouts. Keeping this in mind, the analyst predicts a successful bounce from trendline support could spark a sustained rally toward the $1 mark.
Polygon to $1: Window of Opportunity Narrowing
Analyst MasterAnanda pointed out that the current price action may simply be a calm before a significant move. “The market is providing one last chance to accumulate before a surge in price,” he stated, suggesting a strong impulsive wave could be imminent. The RSI currently hovers in the mid-40s, and if the bullish setup unfolds as anticipated, a rapid move into the 70+ territory could occur.
In terms of price targets, the analyst suggested a full recovery above $1, with a specific target of $1.15. This would signify a complete recovery for POL holders who have been navigating the downturn of 2025. This level aligns with the 1.618 Fibonacci extension projected from the April 7 low. Various other smaller price targets along the path to $1.15 include the $0.461 and $0.534 regions, which correspond to the 0.5 and 0.618 extension levels and may serve as interim consolidation zones.
As it stands, Polygon is trading at $0.2420.
