Summary Polygon trades at $0.239, holding above key support after weeks of weakness below the $0.25 mark. Net inflows of $484,800 on Oct. 2 signal tentative accumulation but remain modest versus prior surges. A breakout above $0.26 is needed to confirm recovery, with downside risk still open toward $0.22. By Jainam Mehta Polygon ( MATIC-USD ) is trading at $0.239 on Thursday, attempting to stabilize after recent declines pulled the token under the $0.25 level. The market remains caught between rising support and heavy overhead resistance, leaving traders focused on whether the token can establish a stronger base for recovery. On the daily chart, MATIC is holding above an ascending support trendline that has guided price since mid-July. The 20-day EMA at $0.238 provides immediate support, while the 50-day EMA at $0.244 has turned into near-term resistance. The 100-day and 200-day EMAs are clustered between $0.240 and $0.257, creating a congestion zone that will determine the next directional move. POL price dynamics (Source: TradingView) Momentum remains neutral. The RSI sits at 48, having rebounded from oversold levels but not yet showing bullish conviction. A push above $0.245 would bring the $0.26–$0.28 resistance zone back into focus. Conversely, failure to hold the rising trendline risks exposing downside toward $0.22 and $0.20, where earlier accumulation zones remain. Inflows show cautious accumulation On-chain flow dynamics have begun to shift in Polygon’s favor. Exchange data recorded $484,800 in net inflows on Oct. 2, coinciding with price stabilization near $0.239. This marks a break from persistent outflows in September that reflected investor caution. While the inflows are modest, they point to tentative accumulation returning at lower levels. Historically, sustained inflows have preceded price recoveries for Polygon, but the current figures remain far smaller than July’s notable accumulation spikes above $5 million. Until inflows grow more robust, the market is likely to remain vulnerable to volatility and sharp swings. Broader outlook and risks Polygon continues to operate within a competitive layer-2 landscape, as Ethereum rollups and alternative scaling solutions fight for liquidity. Still, its network activity remains steady, and broader crypto sentiment could provide indirect support if institutional flows into major assets lift confidence across the sector. Macro conditions remain a complicating factor. The U.S. government shutdown has disrupted key data releases, and with the Federal Reserve expected to weigh rate cuts, altcoins like Polygon could benefit from a softer dollar. However, the lack of immediate risk-on flows into mid-cap tokens underscores a cautious market environment. For now, MATIC’s outlook depends on defending the $0.235–$0.238 support band and pushing through the EMA cluster overhead. A sustained close above $0.26 would shift sentiment decisively toward recovery and open a path to $0.30. Failure to hold the current base, however, risks another pullback toward $0.22. Previously, we discussed how Polygon’s inflow phases often act as early markers of stabilization. The latest modest inflows suggest accumulation interest is reappearing, but stronger conviction from buyers will be needed to confirm a durable recovery. This material may contain third-party opinions; none of the data and information on this webpage constitutes investment advice according to our Disclaimer . While we adhere to strict Editorial Integrity , this post may contain references to products from our partners. Original Post
