POL is poised for a breakthrough as AlloyX launches a cryptocurrency market fund on Polygon.

The price of POL weakened during Thursday's trading session, going against the general uptrend of the crypto market. Efforts to break out of the short term supply zone of 0.2405 – 0.2438 USD have continuously faced obstacles, making the risk of a downward adjustment to the support level of 0.2104 USD increasingly evident.

However, the signals regarding the level of adoption still open up prospects for a stronger growth phase. This scenario is further supported if the Federal Reserve (Fed) fulfills market expectations and lowers interest rates by 25 basis points in October. In the context of low interest rates, capital often tends to seek out high-risk assets, adding further momentum for the crypto market to explode.

AlloyX launches crypto MMF fund on Polygon

AlloyX – one of the leading stablecoin providers in Asia – has just introduced the (Money Market Fund – MMF) in a fully regulated, fully compliant encrypted format, exclusively deployed on the Polygon blockchain. Notably, Standard Chartered Bank (Hong Kong) has been appointed as the sole custodian for this fund, aiming to deliver institutional-grade yields through a new digital asset called Real Yield Token (RYT).

According to Polygon, RYT not only opens up opportunities for investors to access assets belonging to the MMF fund but also "unlocks on-chain yield" through the ecosystem's native strategies. This token performs daily payments while publishing data directly to the blockchain, ensuring high transparency and reliability.

At the same time, Polygon and AlloyX will collaborate to promote various DeFi initiatives and expand strategic integration activities. Polygon asserts: "This launch event reinforces Polygon's position as a preferred blockchain for global payments and tokenization. With low cost advantages, near-instant processing speeds, and long-term stability, Polygon is becoming increasingly prominent as financial markets shift strongly towards on-chain payments."

Technical Analysis: Outlook for POL

On a technical level, POL is under pressure as it continues to trade below key moving averages: the 100-day EMA at 0.2405 USD, the 50-day EMA at 0.2438 USD, and the 200-day EMA at 0.2581 USD.

If buying power does not soon turn the 50 and 100-day EMA into a support zone, the recovery momentum that just formed from last week – after a series of consecutive falls in September – will be hard to maintain.

Daily POL/USDT chart | Source: TradingViewThe relative strength index (RSI) has slightly risen to 46 but is weakening, indicating that buying power is gradually depleting and the risk of profit-taking is increasing. In a negative scenario, POL may retreat to the short term support at 0.2293 USD, or even drop deeper to the important demand zone at 0.2104 USD.

On the contrary, if the bulls push the price to break through all three EMA lines of 50, 100, and 200 days, the technical outlook will lean towards a positive trend, reinforced by practical application signals. At that time, the resistance levels to pay attention to are 0.2966 USD – the zone that was tested at the beginning of September – and 0.3342 USD, the high established in February.

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