Polygon Sees A Critical $0.28 Support as Supply Drops 80%  

• Polygon’s circulating supply has dropped by 80%, adding pressure to its $0.28 support level.  
• The token’s price has fallen over 89% from its peak, raising concerns about recovery.  
• Key resistance levels at $0.67 and $1.19 could signal a turnaround if $0.28 is defended.  

Polygon (POL, formerly MATIC) is navigating a critical phase, trading at $0.31905. Analyst Ali Charts identifies the $0.28 support level as pivotal for the token’s future. This threshold aligns with the base of a descending triangle, signaling intensifying bearish momentum. A breach of this level could push POL toward the 0.236 Fibonacci retracement level at $0.02793, significantly undermining investor confidence.  

Fibonacci Levels Highlight Critical Price Points  

Polygon’s future hinges on key Fibonacci retracement levels. Holding the $0.28 support is essential for preventing further declines. If this level holds, resistance at $0.79508 (0.786) and $2.92550 (1) would serve as vital targets for recovery. However, a breach below $0.28 could accelerate losses, potentially pushing the price toward $0.07293, the 0.236 Fibonacci level.  

Ali Charts underscores the significance of this moment for Polygon’s trajectory in 2025 and beyond. Besides, the $0.28 level serves as a psychological and technical barrier. On-chain data reinforces the precariousness of the situation, with shrinking supply and reduced market activity creating additional challenges.  

Polygon’s ability to defend $0.28 will define its near-term direction. Will scarcity from reduced supply eventually spur a recovery, or will bearish momentum persist? Only time will reveal the answer, but for now, the stakes remain high for POL investors.  

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Circulating Supply Drops 80.92%, Pressuring Recovery  

On-chain data from IntoTheBlock reveals an alarming 80.92% drop in Polygon’s circulating supply over the past year. At its peak, the supply exceeded 7.5 billion tokens, but aggressive reductions began in late 2022. These reductions, likely due to staking or token burns, have failed to prevent the token’s price from declining sharply. Currently trading at $0.31905, POL is down over 89% from its all-time high of $2.92.  

Despite the reduced supply, price recovery remains elusive. The lack of correlation between supply contraction and price improvement indicates a deeper bearish sentiment in the market. Additionally, diminished whale activity is evident, with fewer transactions exceeding $100,000 compared to the 2021 bull market. Institutional participation appears to have waned, exacerbating downward pressure.