The cryptocurrency market is making a notable recovery from last week’s volatility that pushed down to $3,839 before rebounding above $4,100. Both Bitcoin (BTC) and Ethereum (ETH) are up more than 2% today, helping lift sentiment across major altcoins — including Polygon (POL).
POL is back in the green today, and more importantly, its chart is signaling the development of a potential rebound pattern that traders will want to watch closely.
Broadening Wedge Setup in Play
POL’s daily chart shows a classic ascending broadening wedge — a structure that often reflects high volatility and market indecision. While traditionally considered bearish, this pattern can also trigger sharp upside rallies before any potential breakdown occurs.
The latest correction began when POL was rejected from the wedge’s upper trendline near $0.2962 on Sept 03, which sparked a steep decline toward the lower boundary.
This week, the token tested support around $0.21 at the wedge’s base and staged a modest bounce. At the time of writing, POL is trading near $0.2284, sitting just below the 100‑day moving average (MA) at $0.2321 — a critical resistance level.
What to Watch Next?
If POL manages to close and sustain above the 100 MA, it could confirm a bullish reversal, paving the way for a move back toward the wedge’s upper trendline. This would open the door for a rally toward $0.3330 and possibly higher in the short term.
However, if POL fails to hold above the lower wedge boundary, the pattern’s bearish bias could dominate, exposing the token to a potential breakdown below $0.1910, with further downside risk ahead.
For now, all eyes are on whether POL can reclaim momentum and ride the broader crypto market recovery, or if the wedge pattern plays out to the downside.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.