Polygon Drops 10% in a Day: When Will POL Price Bounce Back?

The crypto market has been hit hard once again, with most major altcoins taking losses. Among them, POL has seen a significant drop of 10.41% in a single day, with its current price hovering around $0.2139.

However, despite this sharp decline, the cryptocurrency’s weekly performance remains positive, up 2.40% over the past seven days. So, what’s going on with POL, and when might we see a bounce back?

New Tariffs and Market Impact

The most immediate factor influencing the drop in POL's price is the escalating trade war, particularly the recent announcement by U.S. President Donald Trump regarding new tariffs. On March 25, the U.S. government revealed it would impose a 25% tariff on auto imports from China, Canada, and Mexico, effective April 3. This news sent ripples through the global markets, triggering a sell-off in equities and cryptocurrencies alike.

Trade wars aren’t just about tariffs—they are about uncertainty. As countries take protective measures to shield their economies, fear of a global slowdown takes root. This sentiment spreads through risk assets, including cryptocurrencies, which are especially sensitive to market shifts. The S&P 500 itself has seen a 1.85% drop since the announcement, further highlighting the broader risk aversion. And for crypto enthusiasts, it’s clear: when traditional markets shake, crypto tends to follow.

POL’s Technical Struggles

While the macroeconomic climate plays a role, POL's technical setup paints a grim picture. Earlier this year, Polygon was trapped within a descending channel, with its price steadily slipping. By the end of February, it breached previous lows, accelerating the downtrend. Even now, POL struggles to break through critical resistance levels—specifically the $0.285 and $0.3 zones.

For POL to reverse this bearish momentum, it needs to reclaim these levels as support. Without this shift, it could remain stuck in its downtrend. The market lacks the demand above these levels, and if buying pressure doesn’t materialize soon, more downside could be on the horizon. That said, the Relative Strength Index (RSI) is inching toward neutral, suggesting a potential reversal if it crosses above the 50 mark. The On-Balance Volume (OBV) is also showing increasing buying interest, though the momentum remains uncertain.

Key Levels To Watch For Recovery

Despite the technical hurdles, POL isn't out of the game just yet. It’s important to remember that the overall trend in the market is still heavily influenced by global economic events, particularly the tariffs.

Also, let’s not forget Bitcoin’s impact on the rest of the crypto market. If BTC can hold above the $85K support level after falling from $88K due to a new tariff announcement, other altcoins like POL may find some stability.

Certainly, POL isn’t entirely out of the race yet. Its recovery depends largely on how it navigates the ongoing macroeconomic uncertainty. As traders monitor the broader market, especially with global trade developments in focus, POL’s ability to maintain support levels and break through resistance at $0.285 and $0.3 will be crucial.

If it can manage to push past these barriers, a potential bullish shift could be on the horizon. However, if momentum continues to stall, the bearish trend may linger, keeping downward pressure on the price.

Conclusion

All in all, POL’s sharp drop corresponds to the challenges of the broader crypto market. Escalating trade tensions, coupled with bearish technical indicators, have made it a tough environment for most altcoins.

While POL's short-term outlook is uncertain, its ability to reclaim key resistance levels will be crucial in determining its future direction.