Polygon's ecosystem token, POL, is experiencing a downtrend, characterized by lower highs and lows. Despite Bitcoin's volatility, POL has not gained significantly when BTC rose. Analyst Ali Martinez noted POL's trading range since December, while AMBCrypto identified a descending channel on the daily chart, indicating bearish momentum. The Awesome Oscillator and CMF confirm this bearish pressure. Support levels are at $0.418 and $0.414. Traders are advised to maintain a bearish bias or wait for bullish signals, such as a daily close above $0.464 and $0.507, before considering long positions.

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Polygon [POL], the Polygon Ecosystem Token, has struggled for bullish traction in recent weeks.The volatility of Bitcoin [BTC] did not help — POL slid lower alongside BTC, but failed to register sizeable gains when BTC climbed higher.In a post on X, popular crypto analyst Ali Martinez pointed out that the POL utility token was trading within a range since December. This range extended from $0.414 to $0.531.AMBCrypto had an alternative finding on a higher timeframe, which had bearish implications.Parallel channel, yes, but a more bearish kindAMBCrypto agreed with Ali on the parallel channel formation, but found that on the daily chart, POL was trading within a descending channel.This implied a downtrend, which the price action also reflected over the past month.The token has formed lower highs and lower low as 1-day trading session closes since December. Its Awesome Oscillator showed bearish momentum has been dominant over the past month.The accumulation/distribution indicator was stuck within a range, and has not formed new lows compared to December.On the other hand, the CMF was at -0.15. This was lower than what the indicator reached in late December on the same timeframe. This finding cemented the stern bearish pressure on the token.To the south, the $0.418 and $0.414 levels could act as support.The spot inflows saw some outflows in mid-December, but have been muted since then. The inflows on the 21st of January were followed by a 5.9% price move downward over the next three days.However, the outflows did not always correspond to price gains. Therefore, the consolidation or downtrend idea was still the prevailing sentiment.Read Polygon’s [POL] Price Prediction 2025-26POL traders need to be bearishly biased, or wait for bullish conditions before looking to trade the asset.A daily session close above $0.464 and $0.507 would be a clue for swing traders to begin looking for long position entries.Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

Polygon's POL Token Faces Downtrend Amidst Bearish Market Conditions