Polygon technical analysis: Breakout attempt at $0.1172 resistance

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Polygon jumps 8.01% today on burn news

Highlights

Polygon Foundation plans a permanent burn of 100 million POL tokens, aiming to reduce long-term supply and raise scarcity expectations.
The burn is contingent on final security council approval and mainnet deployment, putting protocol governance and execution timelines in focus.
POL trades in a strong bullish trend above key moving averages with a projected trading range of $0.1078 to $0.1172 over the next 2 to 3 days, though overbought indicators imply short-term pullback risk.

Supply reduction outlook as permanent token burn attracts buyers

Polygon is seeing renewed buying interest following the announcement from its Foundation CEO of a planned permanent burn involving 100 million POL tokens. The burn, pending completion of final security council signatures and mainnet deployment, promises to materially reduce the long-term supply of POL, which tends to support prices by raising scarcity expectations. Alongside this, the ongoing process has heightened attention on protocol governance and execution timelines, as reported by Kucoin.

Bullish signals persist as technicals show overbought risk

From a technical standpoint, POL is holding decisively above its MA-20 and MA-50 on the H1 chart, and is well above the MA-200 at $0.0879. The Ichimoku Kijun sits at $0.1075, acting as immediate support. Momentum indicators continue to present a strong bullish environment, with Buy signals registered on MACD and ADX, while Bull/Bear Power shows ongoing buyer dominance intraday. However, both RSI and CCI, as well as the Stoch RSI, are in overbought territory, highlighting increased risk of a short-term pullback even as the Awesome Oscillator supports the prevailing uptrend.

High probability of breakout as volatility bands define direction

In the short term, POL is expected to fluctuate within a range between $0.1078 and $0.1172 over the next 23 trading days. The probability of further upward movement is very high given prevailing momentum, while a decline is considered very unlikely unless key support near the Ichimoku Kijun at $0.1075 is broken. Should the price consolidate, expect choppy trading within this volatility band; a further bullish scenario emerges if POL sustains above resistance, while a bearish outlook develops only if support is decisively breached.

Viktoras Karapetjanc, expert at Traders Union, sees the planned 100 million POL token burn as a fundamentally bullish driver for Polygon. He believes the news has boosted market sentiment and attracted stronger buying interest. Price action is supported by both medium- and short-term technicals, and momentum remains clearly in the bulls' favor. He notes that overbought signals warn of near-term volatility but sees downside risk as minimal while support holds. "As long as the planned burn progresses and key support near $0.1075 remains intact, I expect buyers to remain in control of POL’s trend," Karapetjanc says.

Earlier, analysts noted that Polygon was maintaining strong technical momentum and expanding its network utility through new payment integrations, resulting in a broadly bullish outlook. The current analysis adds a new catalyst in the form of a major planned token burn, making $0.1075 a critical support level to monitor for any shift in the prevailing bullish scenario.

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.