Polygon’s POL token is navigating a period of short-term volatility while maintaining a strong broader trend. Currently trading around $0.149, POL is down 4.7% over the last 24 hours, yet remains up roughly 39% on the month. This contrast highlights a familiar market dynamic: profit-taking and uncertainty emerging after a strong rally, rather than a clear breakdown in structure.
From a technical perspective, momentum remains constructive. The RSI at 64.7 suggests bullish strength is still intact, though it is approaching levels where cooling periods often emerge. Immediate support sits near $0.147, a level that has so far absorbed selling pressure. A deeper retracement could test the $0.139–$0.140 zone, which aligns closely with the 30-day moving average and would still keep the broader uptrend technically valid. On the upside, resistance around $0.163 remains the key area bulls need to reclaim to reassert short-term control.
Fundamentally, the market is processing mixed signals. Reports surrounding the DeadLock ransomware group exploiting Polygon via a read-only “EtherHiding” technique have introduced temporary FUD. While the exploit does not compromise funds or smart contract integrity, it raises concerns around network optics and potential increased monitoring by infrastructure providers. At the same time, reports of organizational layoffs have added to near-term uncertainty, even as Polygon continues to reposition strategically.
That repositioning is critical to the longer-term picture. Polygon’s focus on stablecoin payments and regulated infrastructure, reinforced by recent acquisitions totaling $250 million, suggests a deliberate pivot toward real-world financial integration. The successful Madhugiri upgrade, which improved throughput and scalability, further strengthens the network’s readiness for higher transaction volumes despite episodic misuse.
Token economics also offer a stabilizing counterbalance. Since early January 2026, approximately 12.5 million POL tokens have been burned, introducing incremental deflationary pressure. While modest in percentage terms, this trend supports long-term supply discipline during periods of market expansion.
Smart money positioning reflects cautious optimism. The long/short ratio near 1.13 points to a slight bullish bias, with evidence of institutional inflows during the recent dip. Short positions remain profitable for now, but a recovery toward the $0.165 region could quickly flip that dynamic and trigger localized short covering.
In summary, POL’s current pullback appears more corrective than structural. As long as key support levels hold, the token remains positioned within a broader recovery narrative—one increasingly shaped by real-world payments, regulatory alignment, and infrastructure maturity rather than pure speculation.
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