Polygon tests $0.0951 support as strong downside momentum persists

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Polygon drops 12.99% today to $0.1058

Highlights

Polygon trading volume jumped to $216 million, more than doubling its 30-day average and boosting liquidity.
The token sustained levels above $0.12 for five days, showing solid participation in governance and staking functions.
POL/USD trades below key moving averages with mixed oscillators, high volatility, and a high probability of declining to $0.0951 to $0.1205 over the next three days.

Liquidity spike and persistent engagement amid ongoing sell pressure

Polygon recorded a sharp increase in trading volume, reaching $216 million and more than doubling its 30-day average. This level of activity indicates heightened participation and increased liquidity, which can contribute to amplified short-term price swings. The token also maintained a period of stability above $0.12 for five days, reflecting sustained interest among participants in the network's core governance and staking functions. These developments reflect strong engagement surrounding Polygon, though price action has remained under broader selling pressure.

Downside momentum prevails as mixed signals cap rebound effort

POL/USD remains beneath the MA-20 at $0.1132 and MA-50 at $0.1179 on the hourly chart, placing short- and medium-term resistance at those levels. On the daily timeframe, the price still sits well above the MA-200 at $0.0887, which serves as a significant support. The Ichimoku Kijun at $0.115 acts as immediate resistance. Among momentum indicators, RSI is at 35.31 (Sell) and MACD is also in Sell mode, while the ADX is Neutral. CCI and Bull/Bear Power both signal prevailing seller control and suggest sustained downside momentum. In contrast, Stoch RSI issues a Buy, highlighting divergence across oscillators, and the Awesome Oscillator is neutral, providing no clear directional bias.

Bearish outlook dominates as risk skews to further downside

In the short term, POL/USD is expected to move within a range of $0.0951 to $0.1205, and the likelihood of a further decline remains very high given the current technical setup. A consolidation phase around current levels is the baseline scenario within this volatility band. If price can break above $0.115, short covering could be triggered, driving a sharper upward move. Conversely, a sustained move below $0.0951 would likely bring increased selling activity and accelerate downside momentum.

Viktoras Karapetjanc, expert at Traders Union, sees clear signs of robust participation in Polygon despite recent price pressure. He notes strong trading volume and consistent interest in the network's governance and staking functions. While technicals still indicate headwinds, longer-term fundamentals remain supportive. Short-term volatility is likely, but the demand base looks resilient. "If current engagement and network activity persist, I expect Polygon to find buyers on dips and maintain its constructive profile in the weeks ahead."

Earlier, analysts noted that Polygon was exhibiting technical divergence as bullish momentum contended with persistent selling pressure despite strong network engagement. The latest data reinforces this caution, highlighting heightened volatility and pointing to $0.0951 as a crucial downside level that could accelerate selling if breached.

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.