Polygon slides nearly 4% as MACD and ADX signal continued selling: weekly analysis

Traders Union
All News
Crypto
Polygon slips 3.79% over the week

Highlights

Polygon price fell 3.79% in the past week to $0.0925, with volatile trading and downside pressure dominating.
Technical signals remain negative as the asset trades below both short- and medium-term averages, while indicators show persistent sell conditions.
POL/USD is expected to trade between $0.0777 and $0.0967 over the next 7 days, with resistance at $0.095 and a 67% probability of further decline.

Acquisition and staking moves drive sentiment amid stablecoin payments expansion

Polygon Labs completed the acquisition of Coinme, a regulated U.S. money transmitter, giving POL access to key financial licenses and enhancing its competitive stance in the stablecoin payments sector, according to Bit2Me News. The company also rolled out the Miden partner mainnet, which now integrates with Polygon's Agglayer cross-chain aggregation, expanding access to blockchain liquidity as reported by ChainCatcher. In addition, a Polygon multisignature wallet sent approximately 52.9 million POL tokens to a staking contract, as part of plans to support staking rewards.

Downside signals strengthen as MACD and ADX affirm bearish momentum this week

On the daily chart, the setup signals a developing trend with a sharp move lower without a sustained trend, as price action remains volatile at 9.3%. MACD and ADX both issue sell signals, pointing to persistent downside pressure, while the Stochastic RSI stands in the overbought zone (89.8497), suggesting possible overheating and correction risk. Key levels to watch are support at $0.0894 (from the MA-200) and resistance at $0.095 (from the MA-20), with the Ichimoku Kijun also offering resistance at $0.1001. Despite holding above long-term support, near-term momentum remains negative.

Downside bias prevails as probability favors range-bound trade below resistance

For the next 7 days, the expected range is $0.0777 to $0.0967, with a 33% probability of price increasing and a 67% probability of a decrease. The base case is for POL/USD to remain capped below resistance at $0.095 and trade between key levels. A move above $0.095 would open the door to a retest of the Ichimoku Kijun at $0.1001. A drop below $0.0894 support could lead to further declines toward the lower end of the expected range.

Sholanke Dele, market strategist, points out that Polygon (POL) struggled to find its footing over the past week, slipping by around 4% as sellers kept momentum capped. He notes that recent efforts like the Coinme acquisition and mainnet integrations may boost Polygon’s long-term positioning, but have yet to translate into sustained demand for POL in the short term. Daily chart signals remain negative, with persistent volatility and risk of overheating as indicated by the Stochastic RSI. Key areas to watch are $0.0894 support and $0.095 resistance, with no clear recovery as long as POL stays below its moving averages. "Despite positive headlines, I remain defensive — unless we see a break above $0.095, the odds still favor downside pressure this week."

Previously it was reported that analysts anticipated continued consolidation for Polygon amid persistent downward momentum and key levels under pressure. This outlook is reinforced by the current technical setup, with traders advised to monitor the $0.0894 support as a potential pivot for further downside toward the lower end of the projected range.

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

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.