Polygon [POL] has declined by 11% over the past 24 hours. This pullback has pushed the price closer to a critical demand zone near $0.90.
That level now acts as the last major line of defense if bearish pressure continues.
Demand zone in focus
On the daily chart, the $0.90 zone 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 pointed to fading selling pressure. The key momentum indicator was approaching an oversold region as well. Notably, the price action proximity to the demand zone aligned with the momentum indicator.
This affirmed the zone as a key turning point, especially with withdrawal addressing shrinking.
The chances of bearish momentum cannot be completely ignored. If bearish momentum accelerates, a breakdown below $0.90 could open the door to further downside.
Exchange reserve shows early signs of stabilization
Exchange reserves were beginning to flatten during this time as well, showing that aggressive POL deposits to exchanges may be slowing.
Typically, dropping reserves on the network indicated reduced immediate sell pressure. That slightly improves the odds of stabilization.
Polygon’s on-chain metrics spark mixed signals
The number of withdrawing addresses on the Polygon network has dropped significantly over the same period.
Usually, fewer withdrawals reflect a reduced short-term movement. It also highlights that holders are waiting rather than actively repositioning.
At the same time, negative inflow trends offered caution. According to AMBCrypto’s recent analysis of exchange data, Polygon’s Mean Exchange Inflows declined sharply over the last 24 hours.
This created mixed sentiment signals.
Lower inflows reduce direct sell pressure, but falling activity can also reflect weak demand.
What comes next for POL?
Polygon now sits at a critical technical level.
As it stands, if buyers defend $0.90 and reserves remain stable, a relief bounce is possible. However, if bearish pressure resumes, the bearish risk will increase.
Meanwhile, the next reaction at the demand zone will likely determine short-term direction.
Final Summary
- Polygon drops 11% as the price approaches the critical $0.90 demand zone.
- Flattening exchange reserves offer hope, but mixed inflow signals keep downside risks still alive.
