Polygon’s POL token has declined by 11% over the past 24 hours, pushing its price toward a critical support zone near $0.90. On-chain metrics present a mixed picture, with exchange reserves flattening but withdrawal addresses and exchange inflows dropping significantly. The token’s next move at this demand zone is poised to determine its short-term direction.
The price of Polygon‘s POL token has fallen 11% in a single day. This pullback brings it near a key historical demand zone at $0.90, which now acts as a major line of defense against further bearish pressure.
On the daily chart, the $0.90 level previously served as strong support and could trigger a technical rebound. However, repeated tests of any support level often weaken its effectiveness over time.
Technical indicators show the stochastic RSI is approaching oversold territory, signaling fading selling pressure. This aligns with the price action near the demand zone, affirming it as a potential turning point.
Exchange reserve data shows early signs of stabilization, indicating aggressive POL deposits to trading platforms may be slowing. A drop in reserves typically suggests reduced immediate sell pressure on the network.
Conversely, the number of addresses withdrawing POL from exchanges has declined sharply. This usually reflects reduced short-term movement and suggests holders are adopting a wait-and-see approach.
Analysis of exchange data also indicates Polygon‘s Mean Exchange Inflows have declined sharply over the last 24 hours. Lower inflows reduce direct sell pressure but can also reflect weak market demand, creating mixed sentiment signals.
The token now sits at a critical technical juncture. If buyers successfully defend the $0.90 level while reserves remain stable, a relief bounce is possible.
Should bearish pressure resume, a breakdown below this support could open the door to further downside. The immediate market reaction at this demand zone will likely set the short-term directional bias.
