Polygon rises 3.5% after new stablecoin upgrade and liquidity surge

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Polygon Surges 3.46% Today on Network Boost

Highlights

Polygon (POL) trades at $0.2514, up 3.46% today and above MA-20, MA-50, and MA-200 averages, confirming broad bullish technical momentum.
Polygon upgraded USDT to USDT0, reducing transaction fees, increasing stablecoin liquidity above $3 billion, and introducing support for gold-backed XAUt0 and easier cross-chain transfers.
Despite strong daily MACD and bullish price action, weekly indicators suggest less than a 20% chance of sustained gains, with a likely consolidation between $0.2285 and $0.2363.

Stablecoin upgrade boosts liquidity and network utility as driver

Polygon’s network has upgraded its USDT stablecoin to USDT0, reducing transaction fees and boosting stablecoin liquidity above $3 billion. This technical enhancement also introduces support for the gold-backed XAUt0 stablecoin and enables streamlined cross-chain transfers, strengthening DeFi and institutional functionality. These moves further reinforce POL’s role as a governance and staking token while enhancing network utility.

Bullish setup prevails as resistance holds and oscillators diverge

This price action confirms a broadly bullish technical structure, with near-term support seen at the Ichimoku Kijun ($0.2341) and the MA-50 ($0.2351), while immediate resistance lies at today’s high and the next psychological hurdle. Looking at oscillators, the MACD on the daily chart suggests strong bullish momentum, while the ADX indicates an ongoing trend but leans bearish despite a high reading. RSI shows a moderate bullish bias, with its value at 55, implying neither overbought nor oversold conditions at this stage, while the Stoch RSI signals neutrality and the CCI shows mild bullishness but no strong overbought warning. Notably, the Awesome Oscillator issues a strong sell on the daily timeframe, offering a counter-signal to the prevailing price trend and highlighting the presence of some bearish undercurrents.

Downside risk increases as short-term consolidation becomes likely

Over the next five trading days, the expected price range is seen at $0.2285 to $0.2363, with an average price of $0.2324 as the market may stabilize after recent gains. Analysis of weekly indicators (RSI, ADX, MACD, and MA-50) points to a very low probability (less than 20%) of a sustained price increase in the coming sessions, making a downward move more likely. The baseline scenario envisions POL consolidating sideways within the indicated corridor. Should bullish momentum unexpectedly strengthen and the price break above resistance levels, a move toward new session highs could unfold, while a break below support at $0.2351 or $0.2341 could see accelerated declines.

Anton Kharitonov, expert at Traders Union, sees Polygon (POL) trading above key moving averages with bullish short-term momentum, but notes that technical oscillators send mixed signals and warn of underlying risk. He believes the base case is sideways consolidation between $0.2285 and $0.2363, with a greater than 80% probability that sustained upside is unlikely in the coming sessions. "With near-term support at $0.2351 and $0.2341, I remain cautious — I see no reason to chase the move unless POL can break and hold above resistance."

Previously, it was noted that sentiment around Polygon trended neutral to slightly bearish as investors adopted a wait-and-see approach amid ongoing macroeconomic uncertainty. Market participants were also concerned about weakening transaction volumes and muted user engagement within Polygon’s DeFi ecosystem.

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.