Polygon falls as seller pressure builds after fresh technical weakness

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Polygon slides 6.98% today to $0.081

Highlights

Polygon integrated SoFi’s regulated bank-issued stablecoin, expanding on-chain liquidity and attracting traditional finance interest to its network.
The stablecoin integration is regarded as a significant ecosystem milestone with potential to draw new partners beyond the core crypto sector.
POL/USD trades below key moving averages with strong bearish momentum, and is expected to consolidate between $0.0777 to $0.0829 over the next 2 to 3 trading days.

SoFi stablecoin integration broadens appeal despite muted price response

Polygon has announced the integration of SoFi’s bank-issued stablecoin on its network, a move that is expected to bring increased network activity and attract traditional finance interest, according to Coinfomania. By enabling a regulated stablecoin issued by a well-known financial institution, Polygon expands its use cases and improves on-chain liquidity, potentially drawing in new partners from outside the core crypto space. The development may be seen as an important ecosystem milestone, though price action has remained under broader selling pressure.

Multiple moving average breaches confirm entrenched bearish momentum

POL/USD is trading below the MA-20 at $0.0836 and the MA-50 at $0.0855 on the hourly chart, as well as below the MA-200 at $0.0895 on the daily timeframe. The Ichimoku Kijun sits at $0.0846 as the nearest resistance. Momentum indicators, including MACD and ADX, register persistent selling activity. RSI, Stoch RSI, and CCI remain in oversold territory, which can sometimes suggest a short-term bounce is possible but lacks confirmation in the current setup. Bull/Bear Power is negative at -0.0013, matching the intraday dominance of sellers, and the Awesome Oscillator continues to show a sell signal.

Downside risk elevated as consolidation expected within tight range

In the coming 2–3 trading days, POL/USD is expected to consolidate within the $0.0777 to $0.0829 range, reflecting a volatility band relative to current levels. The probability of an upward move is very low given present momentum and indicator readings, while the likelihood of continued downside is high. A close above $0.0846 could signal the start of a technical recovery, but a decisive drop below $0.0777 would likely accelerate selling pressure further.

Anton Kharitonov, expert at Traders Union, notes that Polygon continues to face clear selling pressure despite news of SoFi’s stablecoin launch on its network. He sees persistent technical weakness, with every major indicator and price level confirming the sellers’ dominance. Kharitonov remains cautious, viewing the adoption news as important for fundamentals, but not enough to fuel a recovery in the short term. "Until POL/USD can close decisively above $0.0846, I see no technical basis for optimism here."

Previously, it was reported that SoFi's regulated stablecoin SoFiUSD was launched on the Polygon network, expanding both payment and settlement options on the blockchain. With POL/USD now facing intensified technical weakness, traders should monitor the $0.0777 support closely, as a decisive breach could heighten near-term downside risk.

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.