Polygon (POL) holds the line at $0.1
Recently, Polygon (\u003ct-6/\u003e) reacted positively in the psychological support area of $0.1. At the beginning of January, POL had tested this level, and over the weekend, it fell back here again. On January 2nd (Monday), POL rebounded directly by 15.25%, offering a glimmer of hope. However, this short-term rebound is still not enough to reverse POL's long-term downward trend.
Monthly destruction volume hits a record high
The rise in January was accompanied by a significant milestone for POL - the destruction of 3 million tokens in a single day. Throughout January, the rate of POL destruction remained strong. According to AMBCrypto, a total of 25.7 million POL tokens were destroyed that month, marking the highest monthly destruction volume in history. The acceleration of token destruction is undoubtedly a positive for long-term holders, but overall market sentiment remains influenced by Bitcoin's movements.
Bitcoin volatility affects POL
Speaking of market sentiment, the recent selling pressure from Bitcoin has posed some challenges for POL bulls. The price movement of POL largely depends on BTC. If Bitcoin continues to decline, the rebound of POL may be limited. In the short term, the price range for POL is approximately between $0.10 and $0.18, forming a relatively stable range of fluctuations.
Trend and Support Level Analysis
Looking back over the past month, the low point of POL at $0.0987 has been tested and held for the second time. From the weekly chart, the overall trend of POL has been downward since December 2024, but the daily chart shows that the forces of bulls and bears are relatively balanced in the short term. The OBV indicator has not reached a new low, indicating that the buying and selling forces are basically even. This week's rebound of POL also corresponds with Bitcoin's rise back to $79,000 on Monday, indicating that BTC's movement is crucial for POL.
Rebound Space and Key Points
Currently, POL's rebound is expected to extend to $0.1325, which is a significant support level in recent weeks. Meanwhile, the supply area at $0.13 is also a region where bears may take action in the short term. Short-term traders should closely monitor this level. If the price stabilizes above $0.13, there is potential for further gains towards $0.186. However, before Bitcoin breaks through the local resistance, the likelihood of POL continuing to rise is not high.
Investor Strategy Recommendations
For long-term investors, it is encouraging that POL holds the psychological support level of $0.1. However, short-term traders may need to be patient and wait for the price to break through key ranges before taking action. If POL falls below $0.1 again, the decline may present a selling opportunity; if it breaks above $0.13, there may be a chance for a rebound to $0.186.
Summary
In the past few weeks, POL has fluctuated repeatedly between $0.10 and $0.18, forming a range consolidation pattern. The momentum for the short-term rebound mainly relies on Bitcoin's movement. Unless BTC breaks through the local resistance again, the likelihood of POL reaching $0.12 and $0.1325 is low. Overall, the market atmosphere remains cautious, and investors and traders need to closely monitor Bitcoin's movements and arrange their trading pace reasonably.
