Polygon (POL) Flashes Potential Bullish Reversal Pattern – Will It Bounce Back?

Date: Thu, Dec 18, 2025 | 08:50 AM GMT

The broader cryptocurrency market has been experiencing choppy price action over the past several weeks, a phase that began after the sharp sell-off on October 10. That correction dragged** Ethereum (ETH) **down by nearly 22% over the last 60 days, keeping sustained pressure on major altcoins, including Polygon (POL).

POL has dropped more than 10% over the past week and is now down over 43% across the last 60 days. While the short-term trend remains clearly bearish, the higher-timeframe chart is beginning to reveal a technical structure that could be setting the stage for a potential rebound if key levels are reclaimed.

Source: Coinmarketcap

Power of 3 Pattern in Play?

On the weekly chart, POL appears to be forming a classic Power of 3 structure, a pattern often associated with market cycle lows and trend transitions. This setup typically unfolds in three phases — accumulation, manipulation, and expansion — with the most volatile move emerging once the final stage begins.

Accumulation Phase

Earlier in the year, POL spent an extended period consolidating within a well-defined range, capped by resistance near the $0.27 region and supported around the $0.15 zone. This sideways movement reflected an accumulation phase, where volatility compressed and price action became increasingly muted. Such conditions often suggest quiet positioning by larger market participants while broader interest fades and sentiment turns neutral to bearish.

This range-bound behavior laid the groundwork for the next phase of the structure, as liquidity built up on both sides of the market.

Manipulation Phase

During the latest market-wide downturn, POL broke decisively below the $0.15 accumulation support, sliding to a recent low near $0.107. This sharp breakdown, highlighted by the red-shaded area on the chart, aligns closely with the manipulation phase of the Power of 3 pattern. Moves like this are typically designed to trigger stop losses, force capitulation among weaker holders, and push sentiment to pessimistic extremes.

Polygon (POL) Weekly Chart/Coinsprobe (Source: Tradingview)

Notably, the selling pressure has started to lose momentum near this lower zone. Candles are compressing, and downside follow-through appears limited, suggesting that aggressive distribution may be nearing exhaustion.

What’s Next for POL?

At present, POL remains within this manipulation zone, indicating that the market is still probing for direction before committing to a larger move. A brief period of consolidation around current levels would not be unusual, as buyers and sellers continue to battle for control.

For the bullish scenario to gain traction, POL needs to reclaim the $0.15 support zone and move back above the 50-week moving average near $0.1569. A successful recovery above these levels would signal a transition into the expansion phase of the Power of 3 structure, where upside momentum typically accelerates quickly.

If that breakout materializes, the chart projection points toward a potential move into the $0.48–$0.50 region over the coming months, an area that aligns with prior structural resistance.

However, this setup remains conditional. As long as POL continues to trade below $0.15, downside risks cannot be ruled out, and the market remains vulnerable to further volatility. Holding current lows and reclaiming key resistance levels will be critical for bulls to validate the bullish reversal narrative.

Disclaimer: The views and analysis presented in this article are for informational purposes only and reflect the author’s perspective, not financial advice. Technical patterns and indicators discussed are subject to market volatility and may or may not yield the anticipated results. Investors are advised to exercise caution, conduct independent research, and make decisions aligned with their individual risk tolerance.