Date: Sat, March 01, 2025 | 07:32 PM GMT
The cryptocurrency market is bouncing back after yesterday’s sharp sell-off which saw Bitcoin (BTC) dip to $78K before rebounding to $85K today. Altcoins are following suit, with Polygon (POL) and Arbitrum (ARB) showing signs of recovery after correcting over 30% in the past month.
Source: Coinmarketcap
Both tokens are approaching critical resistance levels within their falling wedge patterns. A successful breakout could spark a strong rally, providing significant upside potential.
Polygon (POL)
POL has been trading within a falling wedge since facing rejection at $0.76 on December 3. The prolonged downtrend pushed the token down to a low of $0.24, where it found solid support at the lower boundary of the wedge.
Polygon (POL) Daily Chart/Coinsprobe (Source: Tradingview)
Recently, a shift in market sentiment has triggered a mild recovery, with POL now trading above $0.27. The next major hurdle is the upper trendline of the wedge, a crucial resistance level.
A confirmed breakout above this resistance, followed by a successful retest, could send POL towards its next resistance levels at $0.33 and the 50-day moving average (50MA). If momentum continues, POL could climb to $0.42, marking a potential 53% increase from current levels.
Arbitrum (ARB)
ARB’s price action mirrors that of POL, forming a falling wedge after hitting a high of $1.23 on December 6. The sell-off that followed dragged ARB down to $0.35, where it established strong support at the lower trendline.
Arbitrum (ARB) Daily Chart/Coinsprobe (Source: Tradingview)
Currently, ARB has rebounded to $0.41 and is testing the upper wedge resistance. A breakout above this level, confirmed with strong volume, could propel ARB to $0.51 in the short term.
Further bullish momentum could push ARB toward its 50MA and the next major resistance at $0.67, representing a potential 63% upside from its current price.
Final Thoughts
With both POL and ARB approaching key breakout points, traders are closely watching for confirmation signals. However, the broader market will play a crucial role in determining their trajectory. If Ethereum (ETH) continues its recovery and Bitcoin dominance declines, altcoins like POL and ARB could gain the momentum needed to break out.
Traders should keep an eye on volume surges and breakout confirmations as strong indicators of the next major move.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions in cryptocurrencies.
