Will Polygon avoid deeper losses as sellers maintain control of the trend?

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Polygon drops 7.35% today to $0.0901

Highlights

Polygon has started the mainnet countdown for its 0xMiden project to expand interoperability and connect the first non-EVM chain to global liquidity via AggLayer.
Hyperledger Besu now offers an enterprise cross-chain interoperability feature through AggLayer, advancing Polygon's infrastructure ambitions.
POL/USD faces strong selling pressure with price expected to consolidate between $0.0879 and $0.0926 over the next two to three days, with further downside considered very likely.

Interoperability advances as infrastructure upgrades face selling pressure

Polygon has initiated the mainnet countdown for its 0xMiden project, a milestone aimed at expanding interoperability by connecting the first non-EVM chain to global liquidity through AggLayer, according to Coinfomania. This move illustrates concrete progress in Polygon's infrastructure ambitions, with a focus on broadening network connectivity and technical scope. Additionally, the October 19 highlight of Hyperledger Besu's AggLayer interoperability feature marks continued advancement in cross-chain enterprise blockchain solutions, also reported by Coinfomania, though price action has remained under broader selling pressure.

Bearish momentum builds as price holds key long-term support

POL/USD dipped below its MA-20 and MA-50, exposing short- and medium-term weakness, but remains above the MA-200, which presently acts as critical long-term support. The Ichimoku Kijun level at $0.0939 now serves as the closest resistance for recovery attempts. Key indicators show sustained bearish momentum: MACD and ADX both produced Sell signals, while the Awesome Oscillator and Bull/Bear Power confirm continued downside pressure. RSI at 29.34 and CCI also on Sell highlight clear oversold conditions. Stoch RSI signals a neutral stance, offering little immediate bias against the dominant negative technical setup.

Further declines likely as volatility bands and negative bias persist

Over the next 2 to 3 trading days, POL/USD is expected to fluctuate within a volatility band between $0.0879 and $0.0926. The probability of continued downside remains very high, with sellers likely to target a break below $0.0879 support as the next stage for further declines. A sustained recovery would first require regaining the $0.0939 resistance level marked by the Ichimoku Kijun, though the likelihood of such an upturn in the short term is seen as very low. In the base scenario, the price consolidates inside this corridor under ongoing pressure from negative momentum signals.

Viktoras Karapetjanc, expert at Traders Union, sees Polygon’s recent steps as important foundational progress toward expanding technical interoperability in blockchain networks. He notes that enterprise-focused developments and the 0xMiden mainnet countdown add strength to long-term adoption prospects. Still, near-term sentiment and momentum remain negative, limiting immediate price upside. Karapetjanc believes constructive catalysts are now building beneath the surface, and he says: "Sustained recovery will depend on regaining key resistance, but long-term structural improvements are setting the stage for renewed bullish interest."

Previously it was reported that analysts anticipated continued consolidation for Polygon amid persistent downward momentum and critical support levels in focus. The current setup intensifies this outlook, as technical signals now point to high downside risk with sellers eyeing a potential break below $0.0879 in the days ahead.

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.