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- Polygon (POL) recorded over $369K in daily liquidity outflows across on-chain and exchanges.
- On-chain activity weakened with active addresses dropping to 2.2M.
- POL trades at a key support zone that has historically triggered rebounds.
Polygon [POL] has continued its bearish trajectory, slipping 6% in the past 24 hours and extending its 46% yearly decline. Weak sentiment, persistent liquidity outflows, and falling on-chain activity have kept the token under pressure, though a key demand zone still offers some hope of a rebound.
Liquidity Outflows Intensify
Recent data highlights worsening liquidity conditions for Polygon. According to Artemis, around $105,900 worth of POL was bridged out on-chain, as investors rotated into alternative assets. Off-chain dynamics echoed the same sentiment, with CoinGlass data showing $263,000 worth of POL sold on spot exchanges in just one day.
The derivatives market reinforced this bearish outlook, with nearly $9.9 million in Open Interest (OI) wiped out in the past 24 hours. If capital continues flowing out across all segments, downward pressure on POL’s price could deepen further.
On-Chain Activity Remains Weak
User engagement on-chain has also slowed significantly. Weekly active addresses dropped to 2.2 million, marking a decline in adoption and demand. New user inflows remain muted, sitting at 99,000 after only a minor rebound.
This lack of on-chain traction limits network activity and reduces demand for POL, adding to the market’s bearish momentum. If participation continues to fall, additional supply could spill into exchanges, pushing prices lower.
Support Zone Offers Rebound Potential
Despite these headwinds, technical analysis suggests a potential rally. POL currently trades within a crucial demand zone between $0.2318 and $0.2264. This area has triggered three rallies since August, and early signs indicate another possible rebound.
Also Read: Top 5 Benefits of Bridging to Polygon 2025: Lower Fees, Faster DeFi, and More
However, repeated tests weaken support levels over time. If selling pressure persists, this zone may fail, exposing POL to further downside risks.
Polygon remains under significant strain as liquidity outflows, weak adoption, and falling derivatives interest weigh on sentiment. Still, its price clings to a historically strong support zone, offering a slim chance for recovery. Whether POL can hold this level—or face deeper losses—will depend on renewed investor interest and on-chain growth.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
