Polygon drops 7.61% as bearish signals persist despite network upgrades

Traders Union
All News
Crypto News
Polygon drops 7.61% to $0.1092 today

Highlights

Polygon completed major network upgrades in January, burning 25.7 million POL (0.24% of supply) due to increased activity and integration of the ERC-8004 trustless agent standard.
On-chain activity surged with $13.6 million net inflows and a $29 million rise in stablecoin supply, reinforcing Polygon’s role in the evolving agent economy.
POL trades at $0.1092, well below the MA-20 ($0.1248), MA-50 ($0.1227), and MA-200 ($0.1857), with key support at $0.1040 and bearish momentum prevailing.

Token burn and network upgrade drive positive flows and integration

Polygon has completed significant network upgrades and recorded its highest monthly token burn in January, reducing supply by 25.7 million POL (0.24%) as a direct result of increased network activity. The platform implemented Ethereum's ERC-8004 trustless agent standard, enabling portable identity and reputation for agents across layer-2 networks. On-chain data also shows stronger network usage and liquidity, with net inflows of $13.6 million and a $29 million increase in stablecoin supply, supporting Polygon’s integration in the agent economy.

Bearish momentum persists as oscillators show weak buyer response

Momentum is negative, as the MACD and ADX on the daily chart confirm a bearish bias. RSI, Stochastic RSI, and CCI show weak momentum without indicating deep oversold readings, pointing to an ongoing lack of buyer strength. The Bull/Bear Power favors buyers, signaling a minor short-term counter-trend attempt, while the Awesome Oscillator underlines the prevailing downward pressure. Intraday volatility remains high after a gap down and a move near the day's low, with divergent short-term signals hinting at potential volatility and choppy price action.

Sideways consolidation expected amid persistent bearish technicals

POL is expected to trade within a volatility band of $0.1040 to $0.1190 for the coming week, with this range reflecting typical volatility relative to current levels. The probability of a price increase is low, with technical signals including the weekly RSI, ADX, MACD, and MA-50 suggesting a bearish trend. The baseline scenario calls for sideways consolidation between $0.1040 and $0.1190. A breakout above the Ichimoku Kijun at $0.1399 would shift the outlook bullish, whereas a breakdown below $0.1040 would likely open the door to further declines.

Anton Kharitonov, expert at Traders Union, notes that Polygon remains under bearish technical pressure with little evidence of a reversal. He sees recent upgrades and growing network activity as positives, yet stresses that the price action stays weak. The outlook favors sideways movement within $0.1040 to $0.1190 unless key resistance breaks. "Base case remains a defensive stance — until we see a clear breakout above $0.1399, upside is not convincing."

Previously it was reported that Polygon (POL) is trading below key moving averages, reflecting persistent bearish sentiment across multiple timeframes, with momentum indicators such as MACD and ADX remaining negative despite a short-term bounce signal from the Stoch RSI. The asset remains mid-range within today's band, showing moderate volatility and dominant seller momentum, with no strong evidence yet of a material reversal.

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.