Polygon Drops 9% and Loses Key Support: Can POL Hold $0.09?

Polygon [$POL] has been hit harder than most by the broader market pressure. The altcoin — the token that replaced MATIC following Polygon's 2024 token migration and now secures and pays fees across the Polygon network of Ethereum scaling solutions — came under strong downward pressure, breaking through the $0.1 support and falling to a low of $0.093.

At the time of writing, $POL was trading around $0.094, down 8.9% on the daily charts. Trading volume, however, climbed 54.8% to $87.6 million. Rising volume during a price pullback typically points to increased sell-side activity as investors reduce their exposure.

Polygon is under intense selling pressure

As $POL continued to slip, investors across the market kept exiting their positions. On the spot side, the Spot netflow turned positive after dropping earlier in the session.

As of press time, Spot netflow stood at roughly $849k. A positive netflow indicates that more funds have entered exchanges. When holders cash out during a downtrend, it often reflects fear and a lack of confidence. Historically, increased profit realization during a period of extended weakness has tended to precede further losses.

Derivatives show even more bearish behavior

Sellers have been even more aggressive in the derivatives market. According to Coinalyze data, Polygon Perpetuals recorded $46.79 million in sell volume compared to $43.2 million in buy volume.

At the same time, delta dropped into negative territory, falling to -$9.8 million, while net buying was also negative at -$98 million. With both delta and net buying in the red, most traders appear to have closed their perpetual positions.

The same pattern was observed on the futures side. Polygon saw $23.6 million in futures outflows against $22.1 million in futures inflows. Netflow dropped to -$1.55 million, a trend that has persisted for the past five days. This period of higher outflows has coincided with the price decline.

What's next?

Driven by intense selling pressure, Polygon's downside momentum has strengthened significantly. The altcoin's MACD has formed bearish pressure, falling to 0.007, confirming weakening bullish momentum.

Meanwhile, the positive index of ADX DI continued to decline, falling to 35. A falling DI+ alongside a rising ADX and rising D- signals weakening upside momentum while downside momentum strengthens.

With both indicators pointing downward, the prevailing trend is likely to continue. If bears maintain their pressure, Polygon could fall below $0.09, with $0.082 as the next support level. To invalidate this bearish outlook, $POL would need a daily close above $0.1 and to reclaim the $0.12 resistance. Levels around these marks have historically acted as swing points for the token, making them the reference points traders are watching as the market digests the broader sell-off.

Final Summary

$POL dropped 8.9%, breaching the $0.1 support and falling to a low of $0.092, with bears eyeing a move down to $0.082. Polygon's continued decline has been driven largely by strong selling pressure across the market.