Polygon plunges after technical signals reinforce ongoing bearish trend

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Polygon drops 10.63% today to $0.095

Highlights

Polygon completed a 25.9 million POL token burn to reduce supply, supporting long-term value creation as new capital entered from Ethereum.
Polygon advanced institutional adoption with real-world asset tokenization, $1.18 billion in non-USD stablecoin settlements in Latin America, and Europe's first regulated onchain equity token launch.
POL trades at $0.095, well below MA-20 ($0.1227) and MA-200 ($0.1851), with bearish momentum and a high likelihood of further downside below $0.085.

Supply reduction and asset tokenization drive network adoption

Polygon recently completed a 25.9 million POL token burn to lower supply, supporting longer-term value creation as new capital entered the network from Ethereum. Institutional adoption advanced further with the tokenization of real-world assets and infrastructure, while Polygon strengthened its position as a top platform for non-USD stablecoin settlement, especially in Latin America, where stablecoin transfers reached $1.18 billion. The launch of Europe's first fully regulated onchain equity token, achieved through a collaboration between BeToken and Beself Brands on Polygon, also underscores expanding use cases for the network.

Technical momentum stays negative as support remains absent

Technical analysis remains decidedly bearish, as POL trades far beneath the MA-20, MA-50, and MA-200. There is no nearby dynamic support, with the Ichimoku Kijun resistance at $0.1399 blocking any upside attempts. Momentum indicators confirm persistent weakness: MACD gives a Sell signal, ADX favors sellers, the RSI is low at 38.8, and both the Stochastic RSI and Commodity Channel Index are at or near oversold territory. The Bull/Bear Power is negative and the Awesome Oscillator mirrors the prevailing downtrend, while intraday volatility highlights strong downward pressure near today’s low.

Downside scenario prevails amid low rebound probability

Over the next five trading days, the expected volatility band for POL is between $0.085 and $0.105 based on current levels. The probability of a rebound remains below 20%, suggesting further downside is much more likely. However, should the price close above $0.105, a move towards dynamic resistance at $0.1225 could follow. The main scenario remains limited, sideways movement, but a break below $0.085 would likely open the way for further declines in line with persistent negative momentum signals.

Viktoras Karapetjanc, analyst at Traders Union, sees Polygon’s recent network upgrades and institutional momentum as strong long-term positives. He notes that technical weakness is clear, but believes fundamentals such as token burns and adoption in stablecoin settlements offer a constructive backdrop. Momentum may remain weak in the short term, yet macro and sentiment factors support the case for a future rebound. "While downside risk persists, I remain optimistic that Polygon’s expanding utility and robust fundamentals will lay the groundwork for a renewed recovery once bearish pressures subside."

Last time, analysts noted that Polygon (POL) remains under persistent bearish pressure, trading below all key moving averages with negative momentum confirmed by MACD, ADX, and weak RSI readings, while a lack of strong buyer response suggests continued risk of downside. The asset is expected to consolidate sideways within a defined volatility band, with resistance at the Ichimoku Kijun and momentum oscillators showing little indication of imminent 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

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