Polygon (POL) has experienced an 11% decline over the past 24 hours, bringing the price close to a key demand zone around $0.90.
Currently, this is considered the last major support level before facing the risk of a deeper decline if selling pressure continues.
Key Demand Zone Under Pressure
On the daily chart, the $0.90 price level previously served as a strong support. If buying interest re-emerges, it could trigger a technical rebound. However, repeated tests of this support level may weaken it over time.
At present, POL’s stochastic RSI indicator shows signs of decreasing selling pressure. At the same time, this important momentum indicator is approaching oversold territory, which is often seen as a potential signal for a rebound. Notably, the convergence between the price action nearing the demand zone and the momentum indicator further reinforces the significance of this area as a potential turning point.
Source: TradingView However, the risk of continued decline cannot be entirely ruled out. If selling pressure increases, breaking below the $0.90 level could lead to a deeper drop.
Exchange Reserves Show Signs of Stabilization
Data on exchange reserves indicate initial signs of stabilization, as the amount of POL sent to exchanges has slowed down.
Source: CryptoQuant Typically, a decrease in exchange reserves suggests that immediate selling pressure is easing. This somewhat improves the short-term outlook for price stability.
Mixed Signals from Polygon’s On-Chain Indicators
Interestingly, the number of addresses withdrawing funds from the Polygon network has decreased significantly during the same period.
This decline often reflects a reduction in short-term asset movement activity and indicates that investors are adopting a wait-and-see approach rather than engaging in portfolio rebalancing transactions.
Source: CryptoQuant However, the trend of inflows into exchanges has dropped sharply, raising some concerns. According to recent analysis from Coinphoton, the average amount of money flowing into Polygon exchanges has decreased substantially over the past 24 hours.
Source: CryptoQuant This creates mixed market sentiment signals: lower inflows could reduce immediate selling pressure, but also indicate weakening trading activity demand.
Near-Term Outlook for POL
Polygon is currently approaching a critical technical threshold.
If buying strength is sufficient to successfully defend the $0.90 zone and exchange reserves remain stable, a price rebound could occur. However, if selling pressure persists and breaks through this key support, the risk of a deeper decline remains.
Market reaction at the $0.90 demand zone will play a crucial role in determining POL’s short-term direction.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
BTC surged to $74,000 before falling back below $69,000, with the total market capitalization evaporating approximately $110 billion.
This week, the cryptocurrency industry received positive news from Wall Street, but Bitcoin's price fell from $74,000 to $69,000, with a market cap evaporating approximately $110 billion. The strength of the US dollar and macroeconomic factors are putting pressure on risk assets. Short-term holders are taking profits, increasing selling pressure, but the US spot Bitcoin ETF recorded net inflows, indicating an improvement in the funding environment.
GateNews1h ago
Today, the cryptocurrency Fear & Greed Index dropped to 12, indicating the market is in extreme fear.
Gate News Report, March 7th, according to Alternative.me data, today the cryptocurrency fear and greed index dropped to 12, indicating the market is in a state of "extreme fear." Yesterday, the index was 18, also in the "extreme fear" zone.
GateNews1h ago
Kaspa Tops CoinMarketCap Community Sentiment With 90% Bullish Votes – Here’s Why
Kaspa’s price hasn’t had the best year. The coin is currently trading around $0.03, and on the yearly chart it’s still down roughly 60%. That kind of drop usually hurts sentiment in most crypto
CaptainAltcoin2h ago
Will XRP Hold $1.33 or Extend Toward $1.30 Before Rebound?
XRP is currently trading at $1.35, experiencing a 1.3% decline. Key support is at $1.34, while resistance is at $1.40. The price is testing around the Fibonacci levels of $1.33 and $1.30, crucial for potential upward movement or deeper decline.
CryptoNewsLand7h ago
Dogecoin Monthly Breakdown Pattern Reappears as Price Tests $0.0918
Dogecoin is currently trading at $0.09205 at a gain of 2.3, with support of above $0.08878.
As can be seen in the monthly chart, there are recurring breakdown areas that have been followed by significant expansions in price.
The short-term trading range is narrow and the immediate point o
CryptoNewsLand7h ago
Solana Nears $95 Resistance With $17B Volume Surge
Solana approaches a key resistance level near $95, with increased trading volume and open interest signaling active trader interest. The token is currently at $90.20, facing potential upward movement if it surpasses $95, but may test $85 if rejected.
CryptoFrontNews7h ago
