Latest Polygon (prev. MATIC) (POL) Price Analysis

By CMC AI
21 February 2026 01:05PM (UTC+0)
TLDR

Polygon (prev. MATIC) is up 4.51% to $0.110 in 24h, outperforming a broader market that rose 1.17%, primarily driven by capital rotating into altcoins as sentiment improves.

  1. Primary reason: Sector rotation into altcoins, signaled by a 16.13% jump in the Altcoin Season Index.

  2. Secondary reasons: Positive beta with a rising Bitcoin (+1.41%) and broader market optimism following the U.S. Supreme Court's tariff ruling.

  3. Near-term market outlook: If POL holds above $0.105, a test of $0.115 is likely; a break below risks a drop to $0.095. Watch Thursday's U.S. initial jobless claims for macro direction.

Deep Dive

1. Altcoin Rotation Momentum

The CMC Altcoin Season Index surged 16.13% in 24 hours to 36, indicating capital is shifting from Bitcoin into higher-beta altcoins. This broad rotation is the clearest driver for POL's outperformance, as it falls under the trending Layer 1 narrative category.

What it means: POL is benefiting from a risk-on swing in crypto, where traders seek larger gains in altcoins after a period of extreme fear.

Watch for: Sustained strength in the Altcoin Season Index above 40, which would signal a deeper altcoin rally.

2. Beta Move & Broader Market Lift

POL moved in the same direction as Bitcoin, which gained 1.41% to $68,157. The broader crypto market cap rose 1.17%, lifted by a risk-on move after the U.S. Supreme Court struck down Trump's emergency tariffs. No coin-specific catalyst was visible in the provided data.

What it means: The move was amplified by improving market-wide sentiment, not unique Polygon news.

3. Near-term Market Outlook

The immediate trigger is Thursday's U.S. initial jobless claims data; weaker figures could boost rate-cut hopes and support altcoins. Technically, POL must hold the $0.105 support to maintain momentum toward $0.115.

What it means: The bias is cautiously bullish within a defined range, contingent on macro data and holding key support.

Watch for: A daily close below $0.105, which would invalidate the near-term uptrend.

Conclusion

Market Outlook: Cautiously Bullish (Range-Bound) POL's gain is primarily a beta play on altcoin rotation, lacking a specific catalyst. The path of least resistance is higher if macro sentiment holds.

Key watch: Can POL sustain above $0.105 and the Altcoin Season Index continue rising, or will it revert if Bitcoin dominance rebounds?

CMC AI can make mistakes. Not financial advice.