Polygon’s POL token tumbled 6% on Thursday, falling through key support levels as higher-than-expected U.S. inflation data shook risk assets.
POL traded in a wide 10% range over the past 24 hours, climbing from $0.25 to $0.26 in early trading before reversing sharply, data from CoinDesk Analytics shows.
A burst of selling sent the token down to $0.24, with trading volume spiking to 1.1 million units — more than triple its 24-hour average. The $0.26 mark has now emerged as a significant resistance zone after the high-volume rejection.
The selloff came alongside a broader market decline triggered by a U.S. producer price index (PPI) report showing a 0.9% month-over-month rise in July, the biggest jump in more than three years. The data, which measures wholesale inflation before it reaches consumers, dampened expectations for Federal Reserve rate cuts and pressured speculative assets.
The CoinDesk 20 Index, a benchmark for the broader crypto market, dropped 4% over the same period, as profit-taking accelerated across major tokens. POL was last changing hands near $0.24, with momentum indicators signaling further downside risk.
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