Polygon: Negative momentum and resistance limits fuel steady decline

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Polygon slides 0.48% to $0.1046 today

Highlights

Polygon’s active addresses grew 30% in the past month, while the network processed 182 million transactions over 30 days, up 24%.
Stablecoin supply on Polygon increased 30% year-over-year to $2.27 billion, driven by expanding use in payments and enterprise sectors.
New partnerships with Stripe, Mastercard, Shift4 Payments, MoonPay, and Coinbase, plus the MATIC-to-POL transition, are accelerating ecosystem development.

Rising stablecoin flows and partnerships drive ecosystem expansion

Polygon continues to strengthen its role in the stablecoin and payments ecosystem, with active addresses rising 30% in the past month and the network processing 182 million transactions over 30 days — a 24% increase. The stablecoin supply on Polygon jumped 30% year-over-year to $2.27 billion, driven by expanding adoption in core payment and enterprise sectors. New partnerships include major companies such as Stripe, Mastercard, Shift4 Payments, MoonPay, and Coinbase for payment settlement. The ongoing transition from MATIC to POL and recognition from prediction market platforms like Polymarket further supports the network's ecosystem development.

Bearish momentum persists as oscillators signal possible oversold risk

Technical indicators confirm persistent bearish momentum on POL, with the price trading significantly below all major moving averages. The Ichimoku Kijun at $0.1177 stands as the nearest dynamic resistance; there is no stated immediate dynamic support from Ichimoku. Both MACD and ADX point to strong selling pressure (MACD: Strong Sell, ADX: 54). Oscillators show mixed signals: while RSI at 32 and CCI near -94 suggest POL is nearing oversold conditions, Stoch RSI is mid-range with a buy bias. Seller dominance is confirmed with a negative Bull/Bear Power reading, and low intraday volatility reinforces the bearish tone, but some divergence among oscillators warrants caution.

Downside favored as multiple bearish signals limit recovery odds

Over the next five sessions, POL is likely to fluctuate within a typical volatility band of $0.0995 to $0.1085 relative to current levels. Downside continuation is more probable, with less than a 20% chance of a sustained upward move, as multiple bearish indicators align across the weekly and daily charts. If sellers lose momentum, POL could move sideways within this corridor. However, a failure to hold $0.0995 may open the way for new lows, while a forceful push above $0.1177 could trigger a short-term rally towards higher resistance.

Viktoras Karapetjanc, expert at Traders Union, believes Polygon’s fundamentals remain robust, thanks to growing adoption and strong new partnerships. He sees current price weakness as out of sync with expanding network activity, especially in stablecoins and payments. Technical data confirms short-term downside risk, but macro and on-chain trends point to long-term strength. "Despite short-term volatility, I remain confident that Polygon’s ecosystem developments will drive value once bearish sentiment fades."

Previously it was reported that Polygon (POL) remains under persistent selling pressure, trading below its key moving averages and facing dynamic resistance at the Ichimoku Kijun level amid a narrow range and low volatility. Technical indicators including a weak RSI, bearish MACD, and negative trend readings confirm a sustained downtrend, with further declines favored while support lies near $0.0950 and resistance is capped around $0.1100 to $0.1186.

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.