Key Takeaways
Why does Polygon matter now?
Polygon matched Ethereum with 29% USTBL TVL, cementing its institutional role.
What’s next for POL’s price?
Traders watched $0.22 support and $0.2899 resistance. A rebound could extend toward $0.3426 and $0.4209 if accumulation holds.
Polygon’s native token, POL (ex-MATIC) [POL], drew investor attention as it matched Ethereum [ETH] in U.S. Treasury Bill TVL, with both holding 29%.
This milestone highlighted the rising demand for institutional-grade exposure through Polygon’s network, which has steadily attracted inflows due to its lower fees compared to Ethereum.
As capital rotates toward efficient blockchains, the surge in TVL has become a key driver for POL’s relevance.
Still, price action showed weakness, leaving short-term sentiment hinged on key support and resistance levels.
Can POL hold $0.22 support?
Price action showed that POL slipped toward $0.237 at press time and has been hovering close to its ascending trendline. The charts suggested a possible retest of $0.22 support before momentum builds again.
If buyers defend this zone, a breakout above $0.2899 resistance could unfold, unlocking targets at $0.3426 and possibly $0.4209. Failure to hold $0.22, however, risked a deeper downside.
That left POL’s immediate outlook balanced between resilience and vulnerability.
Source: TradingView
Persistent outflows show bearish undertones
Exchange data indicated that POL saw consistent negative flows at press time. The latest being outflows of around $608.78K.
This trend reflects declining supply on exchanges, often a sign of accumulation by long-term holders.
While this could reduce immediate sell pressure, it also means reduced liquidity, which may amplify volatility during sharp price swings.
Even so, sustained accumulation of exchanges supported a more stable mid-term base.
POL’s Open Interest signals caution
Derivatives market data revealed that POL’s Open Interest fell 8.10% to $142.54 million at press time.
Traders scaled back leveraged exposure after heightened volatility phases.
Lower Open Interest limited immediate swings but reflected weak conviction among short-term speculators.
By contrast, if Spot accumulation and TVL strength aligned, derivatives markets could provide the launchpad for stronger moves.
Can TVL strength offset short-term market caution?
Polygon’s fundamentals stayed firm, supported by its 29% share of U.S. Treasury Bill TVL. Yet near-term performance depended on holding $0.22 and clearing $0.2899.
With persistent outflows and weaker Open Interest, traders leaned cautious. Still, if accumulation persisted, POL could rebound and test higher resistance levels.
