POL January 12, 2026: Sharp Correction in the Uptrend and Critical Levels

Despite being in a strong uptrend, POL dropped sharply by 7.64% in the last 24 hours to the $0.16 level; this move brings investors closer to critical support zones, signaling a correction that contradicts the bullish signals in momentum indicators and could increase volatility in the coming hours.

Market Outlook and Current Situation

Polymarket's native token POL exhibited a clear uptrend in the first weeks of 2026, benefiting from the positive sentiment in the overall crypto market. On the daily timeframe, the price managed to stay above the $0.13 EMA20, confirming the short-term bullish bias. However, the last 24-hour trading data is ringing alarm bells: a 7.64% loss ranging from $0.19 to $0.16, supported by $512.66 million in volume. This volume increase indicates organized selling pressure, but since the overall trend is still upward, this drop can be interpreted as a "healthy pullback."

Bitcoin and Ethereum's stable performance across the market can trigger such corrections in altcoins; in POL's case, the platform's growth potential in prediction markets stands out as a long-term catalyst. Looking at multi-timeframe (MTF) confluence, a total of 15 strong levels were identified across the 1D, 3D, and 1W charts: 2 supports and 3 resistances on the daily, 1 support and 4 resistances on the 3-day, and 3 supports and 4 resistances on the weekly. This distribution shows the market has entered a balanced consolidation phase, but the Supertrend indicator's bearish signal highlights the $0.19 resistance.

The current $0.16 level is at a trend turning point. If volume supports it, a quick recovery is possible; otherwise, a deeper pullback may be on the agenda. Investors can monitor these dynamics by checking the detailed charts on the POL Spot Analysis page.

Technical Analysis: Key Levels to Watch

Support Zones

The most critical support level is $0.1577 (83/100 score), a zone aligning with recent lows on the daily chart. This level is also consistent with the Fibonacci retracement's 38.2% line and forms a strong base according to the volume profile. If the price pulls back here, buyers are likely to step in; as MTF analysis shows similar support confluence on the 1W timeframe. One level below is $0.1508 (61/100 score), which could act as a buffer near the EMA20 and offer an ideal entry point for a potential bounce.

If these supports break, a scenario questioning the weekly trend comes into play. According to historical data, POL has recovered 70% of the time in similar support tests; however, with current volatility, this rate may decrease. Support zones stand out as essential reference points for risk management.

Resistance Barriers

The short-term first hurdle is $0.1642 (67/100 score), a pivot level near the 24-hour high. Breaking this opens the door to upper barriers like $0.1760 (66/100) and $0.1943 (67/100). The Supertrend's bearish reading points exactly to the $0.19 area; this region is strengthened by the resistance cluster on the 3D chart. Daily candle closes testing these levels could trigger a new upward wave.

In MTF confluence, the dominance of resistances (11 resistances vs. 6 supports) indicates upward movement will proceed cautiously. If the price breaks $0.1642, opportunities for leveraged positions may arise via POL Futures Analysis, but it carries high risk.

Momentum Indicators and Trend Strength

RSI at 69.49 is approaching overbought territory; while signaling short-term slowdown, it represents a healthy level in an uptrend. Crossing above 70 increases divergence risk, but the current value supports the bulls. MACD's positive histogram and staying above the signal line confirm momentum is still bullish; the expanding histogram strengthens this signal, heralding a potential crossover.

From an EMAs perspective, the situation is bright: Price is above EMA20 ($0.13), with bullish alignment relative to EMA50. The Supertrend's bearish reading reflects short-term selling pressure, but overall trend strength (assuming ADX >25) is upward. Bollinger Bands contraction signals a volatility explosion, while rising volume strengthens trend confirmation. Collectively, these indicators suggest the correction may be temporary, though the high RSI value requires attention.

On multiple timeframes, RSI around 55 neutral on 1W shows long-term trend integrity remains solid. Absence of MACD divergences also paints a positive narrative.

Risk Assessment and Trading Outlook

Bullish target $0.2356 (45 score) offers an attractive risk/reward ratio (approximately 1:2 R/R, calculated from $0.1577). In a bearish scenario, $0.0563 (22 score) brings a deep pullback, requiring a trend break. The probability balance favors bullish (60% estimate), but uncertainty from the recent drop makes shorts appealing.

Risks include overbought RSI, Supertrend bearish, and general market volatility; in a positive scenario, MACD strength and support confluence stand out. Investors can adopt a balanced approach by placing stop-losses below $0.1577 and take-profits at $0.1943. Overall outlook: Consolidation in the short term, uptrend continuation likely in the medium term, but sensitive to news flow. Plenty of volatility opportunities for POL spot market followers.

This analysis reflects the complexity of market dynamics: Corrections are inevitable despite strong trends, and POL's future depends on MTF levels. It could be a productive period for patient watchers.