Polygon (POL) is witnessing strong bearish pressure as investors regain their confidence in the wider crypto sector. Over the past 24 hours, the token has dropped by almost 4.17%. More notably, the last week recorded a steeper decline of 17.67%, reflecting a sustained downturn.
At the time of writing, the token is trading at $0.2171. Its 24-hour trading volume has climbed 27.74% to $163.04 million, suggesting higher participation despite falling prices. Meanwhile, the market capitalization stands at $2.27 billion, reflecting a 3.94% decline.
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While the price struggles, Polygon’s growth story continues to evolve. The Polygon PoS chain has surpassed 530 million unique addresses, underlining rapid adoption across different user groups. Such momentum highlights the platform’s strong network effects and growing recognition in the blockchain sector.
Polygon has become a hub for decentralized finance projects, gaming platforms, and enterprise blockchain solutions. Developers are increasingly drawn to its scalability and reliability, cementing its role as a trusted infrastructure layer.
For many, POL is emerging as a candidate to become the default Web3 ecosystem at scale. This progress demonstrates that long-term fundamentals remain intact, even as short-term market conditions weigh on price action.
Market analysts are closely watching POL’s ongoing decline for potential reversal opportunities. The daily chart highlights a critical demand zone between $0.2000 and $0.2031, an area that previously acted as strong support. Buyers may step in again if the price revisits this region.
A suggested trade setup involves entering near $0.2031, with confirmation from bullish candlestick signals such as rejection wicks or engulfing patterns. Targets include $0.2623 initially, with a possible extension toward $0.2889 if momentum builds.
The stop-loss is set near $0.1900 to manage downside risk. With an estimated risk-to-reward ratio of 3.5:1, this setup provides attractive potential for traders seeking calculated entries.
Momentum indicators are signaling early signs of extended weakness. The Relative Strength Index (RSI) is currently at 43.45, and the signal line is modestly above at 46.48. Both are below the neutral 50 point, supporting bearish sentiment. The RSI is still above the oversold level of 30, and thus further declines may yet occur before a rebound attempt.
The Moving Average Convergence Divergence (MACD) is also giving cautionary warnings. The MACD line itself, at 0.00883, is also just above the signal line at -0.01977. However, bars on the histogram continue to tighten, suggesting that bullish momentum is fading. If this continues, a bearish crossover is yet to emerge that will move the technical bias firmly to the bearish.
Also Read: Polygon (POL) Breakout: Will $0.29 Resistance Trigger the Next Big Rally?
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