Polygon slips to range lows as persistent bearish momentum dominates: weekly outlook

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Polygon slides 4.70% over the week

Highlights

POL continues to face sustained downside pressure, trading below key moving average resistance and showing no signs of bullish recovery.
Bearish momentum predominates, with indicator signals confirming moderate seller control and no evidence of oversold conditions.
For the coming week, expect POL to consolidate between $0.0741 and $0.0847, with a higher probability of further downside unless $0.0847 is breached.

Protocol upgrades and Mastercard adoption support sentiment amid bearish price move

Polygon completed its Heimdall V2 hard fork on July 2, introducing upgrades aimed at improving validator performance as a core part of its Gigagas roadmap for enhanced transaction throughput. This upgrade brings the protocol closer to its long-term ambition of supporting 100,000 transactions per second. In June, Mastercard integrated POL into regulated stablecoin settlements, further expanding its use in payment infrastructure.

Sell signals intensify over the week as technical indicators favor bears

Weekly technical analysis highlights sustained negative momentum on the W1 chart, as indicated by a strong sell signal from the MACD and a bearish bias confirmed by the ADX. The price is currently below the Ichimoku Kijun and the key moving averages, with weekly resistance defined by the MA-20 ($0.0865). There are no overbought or oversold warnings, with the RSI remaining in bearish territory, the Stochastic RSI neutral, and the CCI favoring a continued sell stance; Bull/Bear Power also suggests sellers dominate the market. Current support is seen near $0.0741, while resistance is at $0.0847, with weekly volatility recorded at 6.78%.

Bearish consolidation expected next week as momentum remains negative

For the next 7 days, POL is expected to consolidate within a range of $0.0741 to $0.0847, reflecting both prevailing bearish momentum and this week’s observed volatility. With all four major W1 momentum indicators showing no bullish signals, any substantial upward movement remains unlikely, and a further downside move below $0.0741 would confirm renewed selling pressure. A sustained move above $0.0847 would be required to trigger a potential bullish reversal scenario, but sideways action within the current range is the baseline expectation for the week ahead.

Anton Kharitonov, expert at Traders Union, notes that Polygon closed the week at the bottom of its range, unable to overcome persistent bearish momentum. He views the protocol’s Heimdall V2 upgrade and Mastercard’s integration as constructive developments for long-term infrastructure, but says these catalysts have failed to offset dominant negative technical signals over the week. Kharitonov highlights that all key W1 momentum indicators remain firmly bearish, with sellers firmly in control and no bullish reversal confirmed yet. For the coming week, he expects consolidation between $0.0741 and $0.0847, with a base case of sideways action unless price firmly breaks these boundaries. The outlook remains cautious; risks are skewed to the downside as long as price stays below $0.0847. "Until POL can reclaim $0.0847 with supporting momentum, I see no basis for optimism this week."

Previously, it was reported that Polygon Labs continued its business transformation with further layoffs and strategic acquisitions, focusing on expanding blockchain-based payment solutions. In light of current market weakness and technical pressure on POL, traders should remain alert to any break below the $0.0741 support, as a confirmed move lower could increase downside risk despite ongoing ecosystem developments.

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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