Polygon: Merchant adoption and DEX growth fail to lift price from weak technicals

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Polygon gains 0.74% to $0.1086 today

Highlights

Polygon's transaction volume surged 90% and active addresses increased 30% over the past month, indicating strong network usage growth.
Partnerships with Polymarket, Stripe, Shift4, and Revolut have fueled activity, with Stripe stablecoin payments on Polygon surpassing $70 million in lifetime volume.
Decentralized exchange activity remains robust on Polygon, posting $210 million in 24-hour volume and $5.72 billion in monthly on-chain transactions.

Rising network engagement as new partnerships drive transaction growth

Polygon has seen a notable increase in activity, with transactions up 90% and active addresses rising 30% over the past month. The network’s growth is supported by high-profile partnerships, including with Polymarket, Stripe, Shift4, and Revolut. Stripe stablecoin payments on Polygon have now exceeded $70 million in lifetime volume, highlighting rising merchant adoption, while decentralized exchange volumes remain robust with $210 million in 24-hour volume and $5.72 billion monthly on-chain activity.

Oversold signals emerge as bearish trend faces resistance

Technically, POL faces dynamic resistance at the Ichimoku Kijun level of $0.1164, with short-term support developing near the recent local lows. Momentum remains bearish, as the daily MACD signals a strong sell and the ADX (54.44) confirms a powerful prevailing trend. Meanwhile, the D1 RSI (37.5) and CCI (-52.7) indicate oversold conditions, and the Stoch RSI sits deep in overbought territory (92.24), signaling potential for near-term volatility. The Bull/Bear Power (BBP) indicator turned positive intraday, suggesting buyer interest, but this diverges from the broader bearish momentum and raises uncertainty.

Range-bound consolidation likely amid conflicting technical cues

For the next five trading days, POL is expected to trade within a typical volatility band between $0.1030 and $0.1140, consolidating amid mixed technical signals. A bullish scenario plays out only if the price breaks above $0.1164, potentially triggering short covering and a move to higher resistances. Should POL fall below $0.1030, renewed selling could test lower supports. Overall, consolidation is the baseline expectation amid ongoing technical uncertainty.

Viktoras Karapetjanc, expert at Traders Union, sees Polygon’s rising network activity and major partnerships as a foundation for long-term strength. He believes institutional and merchant adoption signals positive sentiment despite lingering technical pressure. The analyst notes that consolidating near session highs with oversold signals can set up volatility and a possible upside move if resistance is cleared. "If bullish sentiment holds and POL breaks above $0.1164, I expect buyers to regain momentum and may target higher levels ahead."

Previously it was reported that Polygon (POL) continues to trade below key moving averages with strong selling pressure across all timeframes, as bearish momentum persists and technical indicators such as MACD and RSI reflect a protracted downtrend and oversold conditions. Near-term, the asset is consolidating above minor support while intraday price strength diverges from broader negative trend signals, with resistance at the Ichimoku Kijun and a low probability of immediate upside.

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.