Market analyst Ali does not inspire much confidence in Polygon (POL) as he expects the token to hit a new all-time low of $0.040 in the near future. According to the analyst, POL recently broke out of a descending triangle pattern.
This classic chart formation is marked by lower highs and a horizontal support level, which typically signals a continuation of a bearish trend. The current price of POL is around $0.20, but with technical indicators supporting the analyst’s view, a decline to $0.040 is on the cards.
POL/USD 2-Week Chart Analysis
For instance, the breakout from the descending triangle is a key warning for the anticipated downtrend. More so, the current market momentum suggests that prices will fall even lower. Consequently, market experts will continue to monitor the price’s evolution, especially after breaking vital support levels.
Declining Open Interest Signals Reduced Market Participation
POL futures’s open interest has been gradually declining, suggesting a decrease in market participants. As of March 20, 2025, the price of Polygon is hovering within the $0.22 mark, while its open interest is at $58.05 million.
This marks an intense decrease from earlier levels, where open interest was much higher. Such an event shows that traders are simply reducing their positions, which could largely be attributed to the current bearish sentiment surrounding the cryptocurrency.
Polygon (POL) Open Interest
A decrease in open interest often implies that investors are closing their futures contracts, which aligns with the overall market slowdown. The decline in speculative activity could contribute to the downward pressure on the price, further supporting the analyst’s forecast of a lower price target.
Technical Analysis Points to Bearish Trend
Per the weekly chart analysis, the POL token reached an all-time high of $1.07 before commencing its decline. At press time, the cryptocurrency’s price hovers below key fair value gaps around the $0.42-$0.34 and $0.24-$0.23 ranges, which could be vital resistance levels.
Failure to reclaim these ranges might lead to further downside targets. Besides, the formation of a change of character (CHoCH) concept confirms POL’s market shift from bullish to bearish sentiment. This notion hints the token’s adverse price action may persist in the long term.
POL/USD 1-Week Chart Analysis
The Directional Movement Index (DMI) indicator also supports this bearish outlook. The -DI, at 37.3426, has outpaced the +DI, at 16.2472, implying that POL’s market sentiment favors the bears. However, the ADX value of 22.8895 indicates the bearish sentiment is still weak despite its presence.
Should the ADX value surpass the 25 mark, it could suggest POL’s bearish trend is gaining strength. This could increase the possibility of Polygon plunging to Ali’s anticipated target of $0.040.
 to hit a new low of $0.040 after breaking a descending triangle, with technicals supporting further decline.){kind=link}