Polygon weekly forecast: Recovery holds but faces a stretched setup

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Polygon gains 17.63% over the week

Highlights

Polygon is trading at $0.1095 after rising 17.63% in the past 7 days, above its 20-day and 50-day averages.
Momentum remains strong with both MACD and ADX favoring further gains, but overbought signals from other indicators suggest some risk of pullback.
The expected 7-day range is $0.0992 to $0.1197, with key support at $0.1005 and resistance at $0.1147.

Network burn announcement and new partnerships drive positive sentiment this week

Polygon confirmed the imminent permanent burn of 100 million POL tokens, or about 1% of its circulating supply, pending final approvals from the project's Security Council, according to AMBCrypto and The Coin Republic. This new quarterly burn mechanism is being implemented alongside upgrades that have raised network throughput to 5,000 transactions per second and a partnership with Stable.com enabling direct fiat-to-bank transfers. The Polygon Foundation CEO also highlighted $24.5 million in network revenue in 2026, as the protocol completed a SOC 2 Type 1 security audit of its Open Money Stack, boosting user trust.

Upside momentum builds as overbought signals and key support converge

The daily chart shows a robust trend, as daily volatility over the week hit 20.36%, and the momentum character is a sustained move higher with a firm trend. MACD and ADX both favor further upside, but overbought signals from CCI (161.3522) point to some caution. The nearest support comes in at $0.1005 from the Ichimoku Kijun, while resistance is set by last week’s high at $0.1147. This setup suggests further gains, but momentum signals are nearing stretched levels.

Bullish bias dominates forecasts unless critical resistance or support breaks

For the next 7 days, the expected range is $0.0992 to $0.1197, with a 79% probability of an increase and a 21% chance of a decrease. The base case is a continuation within this range, held up by support at $0.1005 and capped near $0.1147. A bullish break above $0.1147 could see the price challenge the upper boundary at $0.1197. A drop below $0.1005 would expose the pair to a deeper pullback toward the lower end of the forecast range.

Sholanke Dele, market strategist, sees last week’s 18% surge in Polygon as a sign of renewed sentiment, fueled by supply-side developments and product upgrades. He notes that the permanent burn of 100 million tokens, strong throughput improvements, and new real-world partnerships are giving the bulls reasons to hold ground. Dele remains skeptical, however, as overbought signals and stretched momentum make the $0.1005 support crucial. The $0.1147 ceiling and a forecast range of $0.0992 to $0.1197 suggest any upside will likely be a grind, not a breakout. "With the market this tight and momentum already stretched, I’m only buying conviction if $0.1005 holds — otherwise, I stand aside this week."

In a recent review, analysts highlighted bullish momentum in Polygon driven by anticipated token burns and expanding network adoption. The current setup reinforces this outlook, with technical signals showing a sustained upward trend and traders advised to monitor the $0.1005 support and $0.1147 resistance levels for signs of the next directional move.

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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