Polygon (POL) Price Pulls Back on Layoff News: But the Chart Signals a Different Story

Polygon (POL) price is pulling back as crypto markets slow, but the move is raising more questions than concern. As broader altcoins consolidate, POL has slipped toward $0.145, easing from recent highs after reports that Polygon Labs cut around 30% of its workforce. 

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The headline briefly weighed on sentiment, coming just days after POL price delivered a sharp recovery from December lows. Yet while the news grabbed attention, Polygon price structure tells a more nuanced story. Instead of breaking down, POL is holding above key post-breakout levels, suggesting that the market may be absorbing headlines rather than repricing the trend.

That dilemma between negative flows and resilient price structure now sits at the center of Polygon’s-short term outlook.

Polygon (POL) Chart Tells a Different Story

For the past few months, Polygon (POL) traded inside a descending channel, printing lower highs and lower lows that defined a broader downtrend. That bearish structure was invalidated in late December, when price broke decisively above the channel’s upper trendline, signaling a trend reversal.

The breakout sparked a swift surge from the $0.10 region toward the $0.18 resistance zone, where supply temporarily capped further upside. Since then, Polygon price has retraced in a controlled manner toward $0.14-$0.16, a zone that now aligns with former channel resistance turned support.

As Polygon chart structure showcases a textbook breakout and retest pattern, until POL price holds strength above $0.135, the bullish structure remains intact. A sustained reclaim of $0.16 could revive momentum toward $0.19, with a broader extension toward $0.20-$0.23 if sentiment and participation improves.

Layoff Headlines Trigger Caution, Not Capitulation

Reports indicate the workforce reduction follows Polygon’s aggressive $250 million acquisition push, including deals designed to strengthen its Open Money Stack and accelerate stablecoin payments and real-world financial use cases. 

However, the announcement landed as POL price was already cooling from a sharp rally, creating a natural window for profit-taking. The result was a pullback, but not the kind typically associated with panic or structural weakness.

While Polygon price retraces and consolidates near the key zones, POL’s ecosystem metrics continue to strengthen. The network consistently ranks among the most active Layer-2 networks by user engagement, reflecting steady adoption across DeFi, gaming and payments use cases.

Despite the negative headlines, Polygon (POL) price holds support above $0.14 suggests controlled retracement. As long as POL price holds support, the broader recovery remains intact.