POL shows mixed momentum as relative strength index enters overbought territory: weekly forecast

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Polygon gains 0.40% this week

Highlights

POL trades below key moving averages, indicating sustained downside pressure in both medium and long-term timeframes.
Momentum indicators reflect a predominantly bearish bias, with selling pressure outweighing signs of short-term exhaustion or potential rebound.
Expected 7-day range is $0.0976 to $0.1006, with sideways movement likely and a greater chance of downside than breakout.

Privacy upgrades, throughput gains and Visa tie-in drive positive sentiment

Polygon introduced new privacy features to its Chain Development Kit, enabling institutions to develop custom blockchains with configurable privacy, supported by zero-knowledge proofs and regulatory access controls. The network also increased its block gas limit to 140 million, raising throughput to 3,800 transactions per second. Additionally, Polygon was included in Visa's stablecoin settlement pilot, further integrating with major payment infrastructure.

Bearish momentum sustained as weekly indicators show limited buyer strength

Weekly technical analysis shows POL persisting below key weekly moving averages, with the MA-20 acting as nearby dynamic resistance at $0.1044 and MA-50 remaining distant at $0.1616. Weekly support is noted at $0.0976, while resistance stands near $0.1006, close to the high of the past week. The weekly RSI is in a neutral-to-weak range, while the Stochastic RSI signals overbought conditions. Momentum remains bearish, as indicated by MACD and ADX, and the Commodity Channel Index is neutral; Bull/Bear Power suggests light buyer interest but not enough to reverse downside signals.

Sideways trading expected as momentum signals discourage bullish breakout

Over the next 7 days, POL is expected to trade sideways within a tight range of $0.0976 to $0.1006. The probability of an upside breakout is very low, with less than a 20% chance, as none of the four main weekly momentum and oscillator indicators point to a bullish reversal. The baseline scenario is continued consolidation around current levels. A close above $0.1006 could turn short-term sentiment positive, but the more likely outcome is renewed weakness and potential slippage below $0.0976 if sellers gain momentum.

Viktoras Karapetjanc, analyst at Traders Union, sees this week’s developments around Polygon as a strategic foundation for future growth. He notes that recent enhancements—like privacy features for institutional use and improved network throughput—demonstrate growing adoption and positive sentiment, reinforced by Polygon’s involvement in Visa’s stablecoin pilot. While technicals show POL consolidating beneath key averages and upside momentum remains capped, Karapetjanc views current conditions as groundwork for renewed accumulation rather than outright weakness. The analyst expects sideways price action in the coming week, but believes these ecosystem upgrades could accelerate buying interest once the market regains traction. "With Polygon’s ongoing integrations and innovative features, I remain confident that the bullish structure is simply taking time to recharge before its next upward phase."

Earlier, analysts noted that sustained downside pressure and muted momentum indicators were likely to keep Polygon trading within a limited range absent a clear reversal signal. The current analysis affirms this cautious outlook, with new institutional-focused privacy upgrades and throughput enhancements yet to shift prevailing sentiment, making renewed weakness below $0.0976 the key risk for traders to monitor in the coming week.

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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