Polygon (POL) is at risk of plummeting 86% – Entering a long term downward trend?

Recently, the price of Polygon (POL) has begun to show signs of weakness, which may signal the start of a bear market. The failure of this cryptocurrency to maintain some important support levels has led many analysts to predict that the price could drop to $0.04.

Polygon price breaks through important support

Polygon has faced strong selling pressure this year, continuously losing important support levels. In the past, the $0.32 region has always served as a solid support point, but currently, the price is gradually weakening.

The downward trend that has lasted for four years has formed a descending triangle pattern – a negative signal indicating overwhelming selling pressure and the likelihood of prices continuing to plummet. As support levels are successively breached, the bearish outlook becomes increasingly evident.

Market analyst Ali Martinez warns that breaking the important support level at $0.32 could push the price of Polygon down to $0.04. If the bulls cannot regain control, Polygon's downtrend may continue, further reinforcing the negative scenario from this pattern.

POL/USDT chart on a 2-week timeframe | Source: X/ALI## Prolonged decline

In the past few months, the price of Polygon has undergone a significant decline. In March 2025, this cryptocurrency hit a low of $0.2123, down 35% from the peak of the previous month.

More seriously, compared to the same period last year, the price of Polygon has plummeted by 78%, raising doubts about the long-term prospects of this project.

Moreover, market sentiment remains bleak as many investors show a lack of confidence in Polygon's ability to recover after a series of down days.

The continuous decline in interest in Polygon raises concerns that the bear market may persist.

Polygon's open contracts decline sharply

Another worrying signal for the price of Polygon is the decrease in open contracts (OI) of futures contracts.

Open contracts represent the total number of futures contracts that are open and have not been settled or executed.

In the case of Polygon, the OI value has sharply decreased from 119 million USD in January 2025 to 55 million USD in March 2025.

This decline indicates that investor confidence in Polygon is weakening, as fewer and fewer traders are willing to open new positions in this coin. The decrease in OI reflects market hesitancy, while also increasing the risk of a downturn, as bearish sentiment could trigger stronger corrections.

In addition, the market's volatility outlook has prompted some traders to adopt hedging measures, contributing to a decrease in OI to lower levels.

In general, the decline in open contracts reflects a change in investment strategy, as futures contracts are often seen as a speculative tool for future price trends.

Disclaimer:*** The article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions

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