Polygon slides 8.69% with oversold conditions limiting rebound potential near support at $0.0803: weekly report

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Polygon slips 8.69% this week

Highlights

POL price remains under sustained selling pressure, trading below key moving averages and in the lower weekly range.
Momentum indicators signal a strong bearish trend with oversold readings, but no clear sign of reversal.
For the next week, POL is projected to range between $0.0803 and $0.0861, with downside risk dominating unless a clear breakout occurs.

On-chain liquidity expands this week as sPOL staking protocol launches

Polygon Labs has launched sPOL, a liquid staking protocol for POL token holders, enabling users to retain staking rewards while unlocking liquidity for DeFi applications. The introduction of sPOL allows access to $330 million in previously locked POL, providing a tradable, yield-bearing receipt when staking. At launch, sPOL is integrated with Uniswap and supported by 100 million sPOL from Polygon Labs' treasury, aiming to strengthen on-chain liquidity across the ecosystem.

Bearish momentum confirmed over the week amid persistent technical weakness

Weekly technicals for POL are bearish, with the asset trading well below both the MA-20 ($0.1072) and MA-50 ($0.1727), showing an unbroken medium- and long-term downtrend. Momentum indicators including MACD, ADX, and Bull/Bear Power confirm ongoing seller dominance, while RSI, Stochastic RSI, and CCI highlight oversold conditions and the possibility of short-term exhaustion. The nearest dynamic resistance is found at the MA-20 ($0.1072), with weekly support at $0.0803 and resistance at $0.0861.

Narrow range likely next week as reversal signals remain absent

For the next 7 days, the baseline forecast for POL is sideways movement in a narrow corridor between $0.0803 and $0.0861, as no key weekly indicators point to a reversal. The probability of a price increase is low, with less than a 20% chance, while continued downside remains more likely. A move above $0.0861 would signal a potential bullish breakout, but renewed selling below $0.0803 could see POL extend losses.

Earlier, analysts noted that Polygon faced persistent bearish momentum with little sign of immediate reversal, following a network upgrade aimed at enhancing ecosystem scalability. The latest launch of sPOL introduces a fresh catalyst for liquidity and DeFi participation, but until technical momentum shifts materially, traders should focus on the lower band of the current range as the critical level for further downside risk.

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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