Polygon price has recently given indications that it may just be entering a bear market. The price has failed to hold several crucial support levels support and this has led some analysts to expect the cryptocurrency to drop to $0.04.
Polygon Price Breaks Below $0.32 Support
Polygon has been under pressure this year as it has fallen below major support levels. Historically, the $0.32 support level has maintained its position as a dominant support threshold.
However, as the price continued to form the lower high over the past four years, a descending triangle formed.
This formation is widely considered a bearish pattern that signals more downside movement since it shows that the price has breached key support levels.
Market analyst Ali Martinez predicted that the recent breakdown in support levels may push the price down to $0.04.
The failed support level has created conditions that make Polygon susceptible to additional price declines because a bearish pattern develops.
Polygon Price Monthly and Yearly Losses
During the past few months, Polygon price experienced significant reductions. The cryptocurrency price reached $0.2123 in March 2025, representing a 35% reduction from its previous monthly high.
More concerning is the 78% loss over the past year, which has raised questions about the token’s future potential.
Besides, market sentiment remains weak because many investors doubt Polygon can recover from its current downtrend.
The steadily declining token interest during this period intensifies investor concern about an extended market bear phase.
Decline in Polygon Futures OI
Another sign that may raise concern for Polygon price is the decline in the Open Interest (OI) of the futures contracts.
Futures OI stands for the total number of outstanding futures that are still open and not closed out or delivered.
As for Polygon, the value of OI has reduced from 119 million in January 2025 to 55 million in March 2025.
Hence, the decreasing futures open interest demonstrates decreasing investor interest in Polygon because traders avoid initiating new positions in the token.
Open interest levels decrease when investors demonstrate lesser belief in asset market directions. The decrease in investor participation creates risks for the token’s price because worsening market sentiments could trigger more price drops.
Anticipation of market volatility inspires some traders to adopt protective measures, leading to lower OI levels.
The decline in open interest reflects a strategic choice for market participants because futures contracts function as risky speculative tools for price predictions.
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