Polymarket Protocol V2 rollout on Polygon pressures Polygon price below $0.097 support

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Polygon drops 8.03% to $0.1021 today

Highlights

Polymarket has begun deploying Protocol V2 on Polygon, introducing a unified ERC-1155 contract system and pUSD as the exclusive market collateral.
The technical upgrade changes how markets are created and managed, which may impact user activity and transaction patterns before mainnet transition completes.
POL/USD trades below key moving averages with negative momentum and high volatility, facing a projected range of $0.097 to $0.1044 and a strong risk of further downside.

User activity shifts as Polymarket rolls out new protocol on Polygon

Polymarket has started deploying Protocol V2 on Polygon, which introduces a unified ERC-1155 smart contract system and pUSD as sole collateral for its prediction markets, according to Coincentral. This technical rollout represents a significant modification to the platform's infrastructure, immediately influencing how new markets are launched and existing user flows are managed. Although the official mainnet transition date for all new markets remains in the future, the current rollout can shift user activity and platform utility, factors that can affect transaction dynamics in the near term.

Downside momentum intensifies as short-term signals turn bearish

On the H1 timeframe, POL is trading below both the MA-20 at $0.1052 and MA-50 at $0.1073, indicating that seller activity is dominant in the short to medium term. The daily chart shows the price remains above the MA-200 at $0.0891, with the Ichimoku Kijun at $0.1065 acting as immediate resistance. Both MACD and ADX are flashing Sell signals, while RSI at 31.565 and a CCI Sell indicate the market is nearing oversold preconditions. Bull/Bear Power also favors sellers, signaling strong downside intraday momentum, while the Awesome Oscillator remains neutral and Stoch RSI points to potential for a short-term countertrend bounce.

Downward bias persists as volatility and support test loom

POL is expected to trade within a corridor of $0.097 to $0.1044 over the next 2 to 3 sessions, as price action remains volatile and both buyers and sellers consolidate their positions. Bullish recovery would require a clear breakthrough above immediate resistance at $0.1065, opening the way for a more substantial rebound. However, the probability of such an upward move is very low, with the prevailing scenario favoring further declines. Should the price breach the $0.097 support, selling momentum is likely to accelerate, signalling further downside pressure in the short term.

Viktoras Karapetjanc, expert at Traders Union, notes that the launch of Polymarket Protocol V2 on Polygon is a significant step forward for the network’s use case and long-term positioning. He sees that despite current price weakness and strong sell signals, underlying improvements to infrastructure may lay the groundwork for renewed adoption once sentiment recovers. The medium-term outlook is still challenged by heavy selling and technical barriers, but overall fundamentals remain encouraging. "If Polygon continues to innovate at the protocol level, I expect stronger demand to return as market conditions stabilize."

Earlier, analysts noted that Polygon was facing persistent selling pressure despite progress on network upgrades and on-chain activity. The latest technical signals reinforce this cautious outlook, with downside risk in focus as traders monitor the $0.097 level for signs of further volatility.

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.