Polygon (POL) is down 11% in the last 24 hours. This pullback brought the price closer to a critical demand zone near $0.90.
This level now constitutes the last major line of defense if downside pressure persists.
Focus on the demand area
On the daily chart, the $0.90 area previously served as strong support. If buyers step in again, it could trigger a technical rebound. However, repeated tests of support often weaken it.
At press time, POL’s Stochastic RSI indicated decreasing selling pressure. The key momentum indicator was also approaching an oversold region. Notably, the proximity of price action to the demand zone aligns with the momentum indicator.
This confirmed the area as a key turning point, especially with shrinkage and shrinkage.
The chances of bearish momentum cannot be completely ignored. If the bearish momentum picks up, a break below $0.90 could open the door for further decline.
Source: TradingView
The foreign exchange reserve shows the first signs of stabilization
Foreign exchange reserves also began to flatten during this period, showing that aggressive POL deposits on exchanges may be slowing.
Generally, declining reserves on the network indicated a reduction in immediate selling pressure. This slightly improves the chances of stabilization.
Source: CryptoQuant
Polygon’s on-chain metrics spark mixed signals
The number of withdrawal addresses on the Polygon network has decreased significantly over the same period.
Usually, fewer withdrawals reflect a reduction in short-term movements. This also highlights that holders are waiting rather than actively repositioning.
Source: CryptoQuant
At the same time, negative trends in capital inflows call for caution. According to recent exchange data analysis by AMBCrypto, Polygon’s average exchange flows have declined sharply over the past 24 hours.
This created mixed sentiment signals.
Lower capital inflows reduce direct sales pressure, but lower activity may also reflect weak demand.
Source: CryptoQuant
What’s next for POL?
Polygon is now at a critical technical level.
As it stands, if buyers defend $0.90 and reserves remain stable, a relief bounce is possible. However, if downside pressure resumes, downside risk will increase.
Meanwhile, the next reaction at the demand zone will likely determine near-term direction.
Final summary
- Polygon drops 11% as price approaches the critical demand zone of $0.90.
- Flattening foreign exchange reserves offer hope, but mixed inflow signals keep downside risks.
