Polygon drops 7.60% as sellers retain control with $0.0690 support in sight

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Polygon drops 7.60% amid volatility

Highlights

Polygon has launched advanced privacy and compliance features, including zero-knowledge proofs, to address institutional demands for confidential and auditable transactions.
Institutional adoption depends on the successful rollout of these privacy solutions, but overall network price action continues to face strong downward pressure.
POL/USD trades below key moving averages with all major momentum indicators signaling sustained bearishness; near-term price is expected within a volatile $0.0690–$0.0802 range, skewed to further downside.

Institutional adoption hinges on new privacy tools amid selling

Polygon has advanced new privacy features, including zero-knowledge proofs and expanded compliance controls, to address critical institutional requirements for confidentiality and auditable transactions. These measures have been developed in response to ongoing concerns among banks and corporate users about data exposure and front-running risks on public networks. While the analysis underscores that institutional adoption remains contingent on the effective implementation of such technologies, recent network efforts have focused on meeting these demands, though price action has remained under broader selling pressure.

Bearish momentum confirmed as technical levels and signals align

On the hourly timeframe, POL is trading below the MA-20 at $0.0771 and the MA-50 at $0.0785. On the daily timeframe, the price remains under the long-term MA-200 at $0.1061, with the Ichimoku Kijun serving as immediate resistance at $0.0784. Momentum readings are weak: the MACD is flashing a Sell signal, while ADX remains Neutral. RSI at 33.62, along with Stoch RSI and CCI, all indicate oversold conditions with Sell signals. Bull/Bear Power (BBP) suggests further seller dominance, and the Awesome Oscillator (AO) is Neutral, providing no clear direction. The price is trading near the session low with a pronounced negative gap and high intraday volatility, with all observed momentum and oscillator signals reinforcing a bearish intraday backdrop.

Further declines favored unless resistance is decisively reclaimed

Over the next two to three days, POL is likely to trade within a volatility band between $0.0690 and $0.0802. The probability of a further downward move remains much higher than a short-term rebound. Baseline expectations are for sideways price action within this range, with a bullish scenario requiring a sustained move above resistance at $0.0784. If support near $0.0690 is breached and price holds below that level, further declines are likely to follow.

Viktoras Karapetjanc, expert at Traders Union, sees Polygon’s latest privacy and compliance features as a constructive step toward attracting institutional participants. He notes, however, that the market remains dominated by negative momentum for now. Karapetjanc emphasizes that macro sentiment and technical pressure could limit upside in the near term. He believes a clear reversal requires price to reclaim the $0.0784 area. "Fundamental improvements are taking shape, but for a tactical entry, I want to see stabilization above key resistance and momentum turning positive first."

Earlier, analysts noted that Polygon was showing signs of potential positive momentum following a period of heavy selling pressure, suggesting a possible shift in market sentiment. The latest technical and institutional developments, however, indicate that prevailing downside risk remains heightened, making any sustained move above the $0.0784 resistance a critical signal for traders monitoring potential trend reversals.

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.