Polygon's POL token fell 20.25% this week to $0.0747, marking a $0.0191 decline over seven days and one of the sharpest weekly losses for the asset, according to data from Traders Union. The drop extends a sustained downtrend that has pushed POL well below its 20-week and 50-week moving averages, with the token now trading near its lowest levels since late 2024. The decline reflects persistent bearish momentum across technical indicators, including an RSI of 34.56 and weekly volatility of 32.72%, amid ongoing project-specific pressures from the MATIC-to-POL migration and intensifying Layer 2 competition.
POL Trades Below Key Moving Averages With Oversold Indicators
POL now trades below its weekly MA-20 at $0.0938 and MA-50 at $0.1529, placing the token more than 50% below its medium-term trend. The weekly RSI reads 34.56, confirming oversold conditions, while both the Stochastic RSI and Commodity Channel Index show deeply oversold readings, according to Traders Union's technical analysis. MACD and ADX readings signal persistent negative momentum alongside strong trend strength. Weekly volatility reached 32.72%, and the Bull/Bear Power indicator remains negative, highlighting uninterrupted seller dominance. The token is trading at the bottom of its recent range with no divergence or reversal signal visible on major oscillators. This follows a 7.60% drop in the prior week, when analysts warned that downside risk remained elevated.
Analyst Identifies $0.0710 Support as Pivotal Level
Viktoras Karapetjanc, Senior Analyst at Traders Union, said the current setup may not be as one-sided as charts suggest. "The current technical setup may appear bearish, but oversold readings and heavy selling open up opportunities for a rebound," Karapetjanc wrote in his weekly outlook published on June 10. Karapetjanc pointed to dynamic support near $0.0710 as the pivotal level for the coming week. He characterized the selling as potential capitulation that could attract long-term buyers watching for value entries, though he acknowledged the probability of a sustained rally above $0.0785 remains below 20% without a meaningful shift in momentum. Analysts at Traders Union project a trading corridor of $0.0710 to $0.0785 over the next seven days. A decisive close below $0.0710 would confirm renewed downside risk and potentially establish new multi-week lows for the token heading into the second half of June.
POL Decline Outpaces Solana and Cardano by Four to Five Times
POL's 20% weekly decline stands out even against a broader altcoin market under pressure. Solana and Cardano both fell between 3% and 5% over the same period, making POL's drawdown roughly four to five times steeper than comparable mid-cap assets. The gap suggests POL faces project-specific selling pressure beyond general market weakness. Polygon's ongoing migration from MATIC to POL and intensifying competition from rival Layer 2 solutions have weighed on holder sentiment for months. A 20% weekly loss on elevated volatility raises the question of whether current price levels reflect capitulation or the beginning of a deeper structural repricing for the project.
DeFi Exploit on June 6 Added to Negative Catalysts
POL fell 9.77% on June 6 after a DeFi lending protocol was exploited, adding to a run of negative catalysts. The token also dropped 7.28% in early June before staging a brief recovery that quickly faded.
FAQ
What caused Polygon's POL token to fall 20% this week?
POL fell 20.25% this week to $0.0747 due to persistent bearish momentum, oversold technical indicators including an RSI of 34.56, and project-specific pressures from the MATIC-to-POL migration and Layer 2 competition, according to Traders Union data.
What support level did analysts identify for POL?
Viktoras Karapetjanc of Traders Union identified dynamic support near $0.0710 as the pivotal level for the coming week in his June 10 outlook. A decisive close below $0.0710 would confirm renewed downside risk and potentially establish new multi-week lows heading into the second half of June.
How does POL's decline compare to other mid-cap altcoins?
POL's 20% weekly decline is roughly four to five times steeper than comparable mid-cap assets — Solana and Cardano both fell between 3% and 5% over the same period, suggesting POL faces project-specific selling pressure beyond general market weakness.
