Polygon, Ethereum at 29% TVL each – What it means for POL at $0.22 – Crypto News – Crypto News
Connect with us
Polygon, Ethereum at 29% TVL each – What it means for POL at $0.22 Polygon, Ethereum at 29% TVL each – What it means for POL at $0.22

Cryptocurrency

Polygon, Ethereum at 29% TVL each – What it means for POL at $0.22 – Crypto News

Published

10 months ago

on

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.

Source: CoinGlass

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.

Source: CoinGlass

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.

Next: The Uptober effect: Is Bitcoin’s $110K dip really a set-up for $160K?

Related Topics:
Continue Reading

Trending