Staking rewards jump: Can Polygon extend gains?

Traders Union
All News
Crypto
Polygon jumps 7.67% today to $0.1251

Highlights

Polygon governance approved raising staking rewards to 7.7% annualized through December 1, 2026, funded by 27.3 million POL priority fees.
Polygon permanently burned 100 million POL tokens, reducing supply by 1%, while Polymarket, responsible for over 80% of fee revenue, will exit the network.
POL/USD trades within a strong bullish trend after a 7.67% gain, with price expected to range from $0.1168 to $0.1308 in the next 2 to 3 days.

Staking incentives lift sentiment as Polymarket exit clouds revenue outlook

Polygon’s governance has approved a substantial increase in staking rewards to 7.7% annualized between October 1 and December 1, 2026, incentivizing holders to stake their POL tokens and decreasing available supply, according to Cryptobriefing. This decision is funded by 27.3 million accumulated POL priority fees, directly encouraging long-term participation and supporting token demand. Polygon has also permanently burned 100 million POL tokens, or about 1% of total supply, which further tightens circulating supply and adds to upward price pressure, as reported by Chaincatcher. However, the announcement from Predictionnews that Polymarket, a platform responsible for over 80% of Polygon’s fee revenue, will leave the network introduces concerns about potential declines in activity and revenue, though near-term sentiment is anchored by the protocol’s latest pro-staker moves.

Overbought signals surface as buyers dominate momentum above key supports

On the technical front, POL/USD is trading above its MA-20 ($0.1166) and MA-50 ($0.1175) on the hourly chart, and is well above the daily MA-200 ($0.0886). The Ichimoku Kijun at $0.1191 serves as immediate support. Momentum indicators show a strong bullish tilt: MACD signals a buy, while Bull/Bear Power and the Awesome Oscillator both confirm buyers remain in control. However, RSI, Stoch RSI, and CCI readings are all in overbought territory, and ADX currently points to neutral trend strength, hinting at the possibility of near-term exhaustion or corrective moves.

Sideways trading seen likely as range holds and risk skews bullish

Over the next two to three trading days, the expected price range for POL/USD is $0.1168–$0.1308. The most likely scenario is sideways action within this volatility band relative to current levels. Should resistance levels break, the bullish scenario sees a move toward higher ground, but a loss of support at $0.1191 would risk a deeper correction, although this outcome carries a low probability in the current setup.

Viktoras Karapetjanc, expert at Traders Union, sees Polygon’s proactive governance and substantial token burn as major bullish drivers. He believes the surge in staking rewards will anchor demand and support price strength despite risks from Polymarket’s exit. Technicals confirm a bullish environment, though near-term overbought readings may prompt brief corrections. The overall sentiment remains positive and supported by fundamentals. "The latest protocol actions make me constructive on POL’s outlook — the main risk is a sudden drop in network activity, but current demand trends suggest buyers stay in control."

Earlier, analysts noted that Polygon’s long-term value likely depends on the successful integration of its blockchain technology into practical, widely adopted financial services such as payments and stablecoins. The current technical setup and on-chain developments, including increased staking rewards and token burns, reinforce Polygon’s emphasis on utility but make $0.1191 a key level to monitor for shifts in near-term market direction.

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.