Polygon gains 1.14% as sellers remain in control and key resistances persist

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Polygon up 1.14% at $0.1064 today

Highlights

Major decentralized applications, including Polymarket, announced plans to migrate away from Polygon due to network stability and ecosystem limitations as of December 22.
Despite these departures, POL remains actively supported on prominent exchanges such as Coinbase and Bitget, maintaining liquidity for investors.
Polygon continues to function as a Layer-2 scaling solution for Ethereum, with POL used for transaction fees and network governance.

Major dapp migrations cited as network stability concerns grow

Polygon continues to be utilized as a Layer-2 scaling solution for Ethereum, with the POL token used for transaction fees and governance within its ecosystem. Recently, some major decentralized applications, including Polymarket, announced plans to migrate away from Polygon citing concerns about network stability and ecosystem limitations, as confirmed by Polymarket statements on December 22. POL remains actively supported on major exchanges such as Coinbase and Bitget.

Bearish momentum persists despite short-term range-bound trading

Momentum indicators point to continued weakness: MACD signals a strong sell and ADX confirms a strong bearish trend. The RSI is near oversold at 33 (D1) and 28.7 (W1), and CCI also registers as oversold, while the Stoch RSI on D1 is neutral. BBP is slightly negative, indicating sellers still dominate, with the Awesome Oscillator neutral. Today’s trading posted a 1.14% gain, but price remains mid-range within a narrow band and intraday action is flat, partially contradicting the persistent bearish momentum on daily and weekly timeframes.

Limited upside seen as sideways movement likely dominates

Looking ahead, POL is expected to trade within the $0.0950 to $0.1105 range over the next five sessions, based on typical volatility patterns around current levels. The probability of a price increase is low, with the most likely scenario being sideways movement between support at $0.0950 and resistance at $0.1105. A bullish breakout would require a sustained move above $0.1105 and the Kijun level, while a breakdown below $0.0950 could signal further declines.

Viktoras Karapetjanc, expert at Traders Union, sees Polygon’s fundamentals as sound, given continued use as a Layer-2 solution and support on major exchanges. He notes that negative news, such as Polymarket’s exit, has dented sentiment, while momentum indicators remain weak. Despite the current bearish pressure and narrow trading range, the analyst believes macro adoption trends are still favorable long-term. A breakout above $0.1105 could quickly shift momentum if demand returns. "I remain optimistic on Polygon’s prospects — a technical base here could set up an attractive risk-reward for patient investors."

Previously it was reported that Polygon (POL) is exhibiting entrenched bearish momentum, trading below all major moving averages and encountering persistent selling pressure as confirmed by negative MACD, oversold RSI/CCI, and elevated ADX readings. The asset faces resistance near $0.1208 and, with weak rebound prospects, is expected to move sideways within the $0.095–$0.110 range unless it breaks above resistance or breaches key support.

Source of Data: POL Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.