Polygon declines as bearish momentum dominates short-term trend

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Polygon slides 7.34% to $0.0717 today

Highlights

Upbit Staking leads global delegated staking on Polygon, with approximately 413.17 million POL tokens staked as of June 23.
Despite high staking participation, persistent selling pressure continues to drive POL prices lower, overriding positive user commitment signals.
POL/USD trades below major trend indicators, with technical signals pointing to strong downside momentum and a likely range of $0.0696 to $0.0738 in the coming days.

Staking concentration on Upbit limits impact amid prevailing sell-off

Upbit Staking was reported as the top global platform by delegated staking volume on the Polygon network, with approximately 413.17 million POL staked through its service as of June 23, according to En Bloomingbit. This significant concentration of staked tokens on a single major exchange points to a shift in both liquidity and network participation patterns. While the size of the delegated volume highlights active user commitment, the overall impact on immediate market activity has not mitigated recent downward price movement, as broader selling pressure has continued to dominate.

Oversold signals and technical barriers reinforce bearish momentum

On the hourly chart, POL is trading below the MA-20 at $0.0765 and MA-50 at $0.0776, with the MA-200 on the daily chart standing higher at $0.102. The Ichimoku Kijun currently acts as immediate resistance at $0.0751. Momentum indicators reinforce the weakness: the Moving Average Convergence Divergence (MACD) and Average Directional Index (ADX) remain on Sell signals, while the Relative Strength Index (RSI) is deeply oversold at 16.1. Both the Stochastic RSI and Commodity Channel Index (CCI) are firmly in oversold territory, Bull/Bear Power confirms seller dominance, and the Awesome Oscillator is also aligned to the downside.

Downside risk elevated as upward scenario faces key resistance

Over the next 2 to 3 trading days, POL is expected to trade within a range of $0.0696 to $0.0738 based on typical volatility patterns. An upward move is considered highly improbable in the short term, with prevailing technical momentum pointing to a greater likelihood of further downside. If the price breaks above the Kijun resistance at $0.0751, a short-term bullish scenario could unfold; conversely, a drop below the lower support would open the path toward the bottom of the projected range.

Viktoras Karapetjanc, Traders Union expert, sees the significant concentration of staked POL on Upbit as an institutional signal of long-term network confidence. He notes that despite this, the immediate market is dominated by persistent selling and oversold technicals. The analyst believes short-term risk remains skewed to the downside, but gauges sentiment as constructive given the strong staking participation. "If Polygon maintains this level of network commitment, any relief in macro pressure could quickly shift momentum to the upside," he concludes.

Previously it was reported that Polygon continued to exhibit sustained bearish momentum, with analysts warning of further downside risks amid limited signs of reversal. The latest developments—highlighting both deepening oversold conditions and shifts in staking participation—reinforce the immediate downside scenario, making a confirmed move below the $0.0696 support level the critical risk for traders to monitor in the coming days.

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.