POL Drops 6% on as Inflation Shock Triggers Heavy Selling
Polygon’s POL token faced a significant drop of 6% on Thursday, as it fell below key support levels due to higher-than-expected U.S. inflation data impacting risk assets. The token experienced a wide 10% trading range over the past 24 hours, starting at $0.25 and climbing to $0.26 in early trading before reversing course dramatically. This sharp reversal led to a drop 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 become a crucial resistance zone following the high-volume rejection.
The sell-off occurred alongside a broader market decline triggered by a U.S. producer price index (PPI) report showing a 0.9% month-over-month increase in July, the largest jump in over three years. This data, which measures wholesale inflation before it reaches consumers, dampened expectations for Federal Reserve rate cuts and put pressure on speculative assets. The CoinDesk 20 Index, a benchmark for the broader crypto market, also saw a 4% drop during the same period, with profit-taking accelerating across major tokens. POL was last trading near $0.24, with momentum indicators suggesting further downside risk.
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