Polygon (POL) just surged more than 10.75% thanks to recovery demand and optimistic signals, but profit-taking pressure still threatens the short-term upward trend.
Polygon's recovery is attracting investors back to the market, but profit-taking pressure could cause prices to quickly adjust if buyers do not maintain dominance.
MAIN CONTENT
Polygon increased over 10.75% due to strong buying demand and fresh capital flowing into both the spot and derivatives markets.
Increasing profit-taking pressure from investors may curb or reverse the current upward price trend.
The price of Polygon may aim for the 0.255 USD area if momentum is maintained, or adjust down to 0.207 USD if selling pressure dominates.
What is Polygon (POL)?
Polygon (POL) is a Layer 2 scaling platform for Blockchain, helping to increase performance and reduce fees for DApps on the Ethereum network through technologies like zk-Rollup and Proof of Stake (PoS).
Polygon supports developers in building DeFi applications (DeFi), NFTs, and many Blockchain solutions with solid scalability, while also relieving the Ethereum network, thereby driving strong growth in the cryptocurrency ecosystem.
What has driven the price of Polygon to increase over 10.75% recently?
In the past 24 hours, Polygon has surged 10.75% due to overwhelming buying demand, new capital entering the market, and optimistic technical indicators/on-chain reports.
Since creating a local bottom at 0.19 USD five days ago, the price has risen to 0.2369 USD, pulling market capitalization up 9.63% to 2.48 billion USD according to CoinMarketCap and Coinalyze data. The return of demand has generated strong momentum and a positive atmosphere in the market.
The increase in market capitalization corresponding to new capital inflows is a sign of smart money entering, reflecting expectations for a positive shift in the asset.
Analysis by AMBCrypto on July 7, 2025, citing data from CoinMarketCap
In addition, technical indicators like RSI and DMI also confirm the current upward trend, helping to strengthen investors' confidence in Polygon.
How has buying demand in the spot market for Polygon recovered?
Demand in the spot market has increased significantly as buying volume exceeded selling volume for the first time in many days, indicating that both short-term speculative capital and long-term investment are returning.
On July 7, Coinalyze recorded 16.55 million POL tokens bought, surpassing 15.76 million tokens sold, creating a positive buying-sell gap of 792,600 POL. This positive gap reflects strong accumulation by investors expecting price increases.
A positive buying-sell volume gap is the first sign forecasting the possibility of a reversal when the buyers regain control of the market.
Coinalyze On-chain Report, 7/7/2025
When the number of buyers exceeds that of sellers, assets often experience upward price pressure. This drives short-term increases and attracts more investors to participate, creating a chain effect in the market.
How to measure demand in the derivatives market for Polygon?
In the derivatives market, the strong increase in Open Interest and trading volume demonstrates that institutional capital and professional speculators are actively entering.
CoinGlass data shows that Polygon's Open Interest surged 13.22% to 118.76 million USD, while trading volume increased 1.34% to 165.11 million USD. This indicates an expansion in the number of positions, particularly focused on the long side.
The Long-Short Ratio of Polygon has increased to 1.04, equivalent to 51% long positions compared to 48% short positions. Thus, there is a slight dominance of the buyers in the new open orders.
Growth in Open Interest alongside trading volume is a strong indicator that large capital is choosing the buying side, reflecting strong price increase expectations in the short term.
CoinGlass Derivatives Market Report, July 2025
According to theory and experience from major exchanges like Binance or CME, when Open Interest and Long-Short Ratio rise, it is a clear sign of market confidence in a sustainable trend. However, if this capital flow reverses or is negated by large sell-offs, leveraged positions can be quickly liquidated, leading to strong volatility.
How does the reaction of profit-taking investors affect the trend?
As soon as the price of Polygon rises above the nearest bottom, a large number of holders in a loss position have sold to realize profits, creating short-term pressure on the market.
Data from CoinGlass indicates that the Netflow for POL has turned positive at 602K USD—indicating that the inflow to the exchange for selling exceeds the outflow. When inflows to the exchange increase significantly, it is usually a period when investors want to take profit after price increases.
The rapid increase in inflows to the exchange indicates that selling pressure is dominant, which is a factor that may lead to price adjustments after accelerating too quickly.
Comment from CoinGlass, July 2025
History has also shown that during strong price upcycles, waves of profit-taking will appear after several strong pushes, often pulling prices back slightly before establishing the next trend. This requires new investors to pay attention to entry points and be cautious of short-term reversal risks.
Can Polygon maintain and continue to break out?
According to AMBCrypto's analysis, the recovery trend combined with the return of capital is helping Polygon maintain its upward trend. All technical indicators reinforce the view that the trend still leans towards the buying side.
The Relative Strength Index (RSI) has crossed the 59 mark—a bullish signal. The DMI (Positive Directional Movement Index) reached 26, indicating strong upward momentum. If the buying forces maintain and successfully absorb profit-taking pressure, Polygon may reclaim the 0.24 USD mark and move towards the next resistance area at 0.255 USD.
Only when buying capital actively absorbs selling pressure can the upward trend be safely assured in the short term.
AMBCrypto commented on July 7, 2025
Conversely, if profit-taking pressure increases beyond the buying side's absorption capacity, the uptrend will weaken and prices may drop to the support area of 0.207 USD. This will be a test of investor sentiment and the endurance of speculative capital.
Comparing short-term price scenarios for Polygon
To visualize the price trend of Polygon clearly, the table below compares two main scenarios based on the latest market signals:
Scenario Leading Signal Price Target Associated Risks Continuing Up Strong capital flow, healthy RSI/DMI, overwhelming buying demand Targeting 0.255 USD, if surpassed will reach new resistance levels High expectations may easily trigger short-term profit-taking, risk of adjustment when FOMO decreases Short-term Adjustment Increasing profit-taking pressure, positive Netflow, liquidity withdrawal Returning to the support area around 0.207 USD or lower Widespread pessimistic sentiment may push prices deeper if there is no support.
The significance of technical indicators in predicting Polygon's price
Indicators like RSI (Relative Strength Index) and DMI (Directional Movement Index) play a crucial role in helping investors identify early stages of price increases or corrections.
When the RSI approaches the 60 mark, it is a signal that the trend is strengthening; a high DMI confirms the dominant upward force. However, if these indicators reach overbought territory (RSI exceeds 70), investors will need to be cautious of a correction scenario.
Combining these indicators with on-chain capital flows provides a comprehensive view of both technical aspects and the psychology of actual capital flows.
Is the demand in the derivatives market sustainable in the long term?
Although the derivatives market is currently strongly attracting investors with high Open Interest, the history of cryptocurrency assets shows that this demand fluctuates quite strongly and is sensitive to short-term price variations.
Many experts warn that when Open Interest and Long-Short Ratio rise sharply, pulling high leverage, asset prices are vulnerable to large liquidation events if the market experiences a sudden correction.
For instance, liquidation phases in the Futures market for Bitcoin and Ethereum from 2021 to 2023 caused the assets to drop sharply within just a few hours, as recorded by Glassnode and The Block.
Comparing Polygon's price action with other major Altcoins over the past week
Polygon's increase of over 10% last week stands out compared to most Altcoins, which either increased less or fluctuated in the accumulation area. Updated data from CoinGecko on July 7, 2025, shows:
Altcoin Name 7-day Price Increase (%) Market Capitalization (USD) Polygon (POL) +10.75 2.48 billion Solana (SOL) +4.3 72.5 billion Avalanche (AVAX) +2.8 9.44 billion Chainlink (LINK) +3.2 7.15 billion
The superior price increase rate of Polygon signals that speculative capital prefers assets with large volatility while the overall market remains cautious.
What factors should be monitored if investing in Polygon at this time?
Investors should closely monitor factors: on-chain capital flows (Netflow, Spot Volume), derivatives indicators (Open Interest, Long-Short Ratio), trading volume, accumulation-distribution levels, and strong profit-taking signals on major exchanges.
Capital management and caution with volatility are mandatory, as the market can quickly reverse when profit-taking pressure appears unexpectedly or FOMO sentiment quickly declines.
"The cryptocurrency market always emphasizes the discipline of risk management and vigilance against hot capital to avoid falling into psychological traps."
Vitalik Buterin – Co-founder of Ethereum, speaking at Vietnam Blockchain Week 2024 (according to The Block)
What investment strategy is suitable for Polygon's current developments?
In the context of a highly volatile market, experts recommend that investors prioritize short-term or medium-term trading strategies based on technical signals and strict risk management.
Flexible stop-loss placement, dividing capital into multiple parts, and limiting the use of high leverage help ensure safety against unexpected volatility, especially during periods of increasing profit-taking pressure in the market.
Forecasting Polygon's price trend in the upcoming quarter according to experts
Reputable institutions like Messari and CoinShares forecast that Polygon will experience strong volatility due to speculative capital and is susceptible to news regarding the development of the Ethereum ecosystem. However, the gradual stabilization of global monetary policy, along with new capital from large investment funds, may create a new breakout momentum for Polygon in the next quarter, especially if Bitcoin and Ethereum maintain their market capitalization.
Frequently Asked Questions
What is Polygon (POL) and its standout strengths?
Polygon is a Layer 2 platform that helps scale and reduce transaction fees on Ethereum, with superior performance and low fees, suitable for developing DApps and NFTs.
What is the main reason for the recent strong price increase of Polygon?
Prices increase thanks to overwhelming spot buying surpassing selling, significant capital flowing into derivatives, and optimistic technical indicators such as RSI and DMI rising sharply.
How to recognize signs of a price reversal for Polygon?
Observing a sudden spike in exchange Netflow, RSI approaching overbought territory, and overwhelming selling capital for profit-taking are warning signs of a reversal.
What are Polygon's short-term price targets and current support levels?
If buyers maintain their strength, Polygon may target 0.255 USD; if it reverses, the support area around 0.207 USD will be a short-term balancing point.
How does demand in the derivatives market affect the price of Polygon?
Strong Futures demand can help push prices up quickly, but it also increases the risk of mass liquidations if an unexpected market correction occurs.
What are the prominent risks when investing in Polygon at this stage?
The main risks are short-term profit-taking pressure, strong volatility due to speculative capital, and liquidation risks in the derivatives market when high leverage is involved.
What is the right time to enter a position with Polygon?
Should wait for a clear trend confirmation, combining technical signals with strict risk management to avoid buying during FOMO or too close to the peak.
Source: https://tintucbitcoin.com/pol-co-the-vuot-0255-usd/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to keep up with the latest news about the cryptocurrency market and not miss any important information!
