The price of Polygon (POL) appears to be at a critical point, with signs of a potential bullish breakout. The token’s price chart shows a positive trend, suggesting it could soon climb past the $0.29 resistance zone. However, this upward momentum could be challenged by broader market volatility, particularly from Bitcoin (BTC).
Bitcoin is showing signs of a potential short squeeze, with a significant amount of short liquidations building up above the $110,000 level. A sudden price movement in Bitcoin could trigger a ripple effect across the crypto market, potentially adding downward pressure on altcoins like POL, even as its own technical indicators look promising.
On the technical side, Polygon’s market structure has shown a clear bullish breakout on the 1-day chart. Key indicators support this trend:
- Fibonacci extension levels point to potential price targets of $0.287, $0.313, and $0.3255.
- The Chaikin Money Flow (CMF) has consistently been above +0.05, and is currently at +0.15, indicating strong buying pressure.
Despite these bullish signs, a look at the Liquidation Heatmap reveals some potential hurdles. There are significant pockets of liquidity in both directions around the current price. If Bitcoin weakens, POL could see a retracement toward the $0.27 liquidity zone before a move higher. Additionally, the $0.29 and $0.295 levels are acting as “magnetic zones” that could trigger a temporary bearish reversal.
In order for Polygon’s rally to continue, it will need sustained buying pressure to overcome these hurdles. Traders are advised to be cautious of these potential pitfalls, as the token’s trajectory is balanced between its own bullish technicals and the broader market’s potential for turbulence.
September 2025, Cryptoniteuae
