Polygon [POL] is experiencing significant downside pressure after its uptrend collapsed at $0.12. The altcoin has closed at lower lows for two consecutive days, breaching the $0.11 support level and falling to a low of $0.105. As of the latest data, Polygon was trading around $0.108, representing a 12.3% daily decline.
Trading volume dropped 34% to $157 million during the same period, indicating reduced market participation. On the derivatives side, Polygon's Open Interest fell 11.3% to $111 million, while derivatives volume plunged 38% to $157 million. The decline in open interest suggests traders are actively closing positions.
Outflows and market structure
Polygon recorded $49.43 million in Futures outflows over the past 24 hours, resulting in a Futures netflow of -$3.04 million. On the spot market, the altcoin recorded 139 million in sell volume, demonstrating dominant selling pressure across both markets.
Technical indicators and outlook
Polygon's Relative Strength Index (RSI) formed a bearish crossover and fell to 69, though it remains within a bullish zone. The altcoin's DI+ stands at 45, DI- at 12, and ADX at 50, indicating that upward momentum still holds despite aggressive selling.
The technical setup presents two possible scenarios: if bulls maintain control, they may defend the $0.10 support level and potentially reclaim $0.12 with $0.14 as key resistance. Conversely, if selling pressure persists and sellers overpower buyers, $0.10 support could fail, with the price falling to $0.094.
