Polygon slides with persistent bearish momentum as price remains below key moving averages: weekly outlook

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Polygon falls 20.25% this week

Highlights

POL remains in a pronounced downtrend, trading well below key resistance levels with sellers dominating the market.
Multiple momentum indicators confirm deeply oversold conditions, but there is no signal of an imminent reversal.
For the coming week, price is expected to hold between $0.0710 and $0.0785, with downside risk prevailing.

Oversold signals intensify as bearish momentum dominates this week

On the weekly timeframe, POL continues to show strong bearish momentum, with the Ichimoku Kijun far above at $0.1288 and both MA-20 and MA-50 acting as immediate resistance levels. The weekly RSI stands at 34.56, confirming an oversold state alongside oversold readings on both the Stochastic RSI and CCI. MACD and ADX both indicate persistent negative momentum and strong trend strength, while the Bull/Bear Power remains negative, highlighting seller dominance. Weekly volatility is elevated at 32.72%, and POL is trading at the very bottom of its recent range, suggesting heavy pressure on support with no divergence or sign of reversal on oscillators.

Further downside risk as weekly breakout remains unlikely

Based on the current technical setup, POL is expected to trade within the $0.0710 to $0.0785 corridor over the next 7 days, maintaining a bearish tone as confirmed by all major weekly indicators. The probability of a sustained rally above $0.0785 is below 20% unless a significant shift occurs in momentum. Should bulls regain strength and move the price above $0.0785, a more constructive scenario could emerge, but the prevailing trend favors further downside. A decisive close below $0.0710 would confirm renewed downside risk, potentially establishing new weekly lows as the downtrend continues.

Viktoras Karapetjanc, Senior Analyst at Traders Union, observes that Polygon (POL) has experienced strong selling pressure over the past week, closing deeply oversold and below all crucial resistance levels. He sees the sustained negative momentum and elevated volatility as evidence of capitulation, but also as potential groundwork for bulls should sentiment turn. While weekly indicators confirm persistent downside, Karapetjanc is confident that such stretched moves frequently trigger attention from long-term buyers watching for value. He believes that dynamic support near $0.0710 will be pivotal in the coming week, especially given historically elevated volatility ranges. "The current technical setup may appear bearish, but oversold readings and heavy selling open up opportunities for a rebound — I see this market as primed for tactical accumulation and a potential move higher if $0.0710 holds."

Earlier, analysts noted that prevailing downside risk remained elevated for Polygon amid persistent bearish momentum and institutional hesitancy. The latest weekly indicators not only reinforce this negative outlook but also highlight a heightened risk of fresh multi-week lows should support near $0.0710 fail to hold.

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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