Intercontinental Exchange Inc. (NYSE:ICE) rose 4% in premarket trading on Tuesday after reports said it will invest up to $2 billion in Polymarket, valuing the prediction market platform near $8 billion, according to WSJ.
Polymarket Deal Sends Premarket Surge
In premarket trading, ICE climbed to $165.01, up 3.7%, as investors responded positively to reports of a $2 billion Polymarket stake.
The move signals diversification into digital prediction markets — an emerging high-growth niche connecting finance and blockchain technology.
The proposed investment, reported by WSJ, would value Polymarket between $8 billion and $10 billion.
Founded in 2020, Polymarket lets users bet on yes-or-no questions about politics, sports, and current events.
The platform, once restricted from U.S. access following a 2022 regulatory settlement, has seen improved relations with regulators under the current administration.
Polymarket founder and CEO Shayne Coplan said the partnership with ICE marks "a major step in bringing prediction markets into the financial mainstream," adding that combining ICE's institutional scale with Polymarket's technology "ushers in a new era of tokenization."
ICE Stock Slides Into Oversold Zone
ICE Key Technical Levels (Source: TradingView)
ICE shares have been in a steep decline since peaking near $188 earlier this year.
The stock broke below its 200-day exponential moving average (EMA) at $169.36 and slid toward a major support band around $158–$160.
Monday's close at $159.06 marked a 2.2% drop, leaving the relative strength index (RSI) near 30.2 — an oversold zone where historical rebounds have often followed.
The correction has pushed momentum indicators to extremes, suggesting downside exhaustion.
Traders are now watching whether buyers can defend the $158 support, which aligns with long-term ascending trendline support visible on multi-year charts.
Critical $158 Support Emerges As Lifeline
The ascending trendline from 2020 lows caught the price near $159, coinciding with horizontal supports formed during April and May consolidations.
Technical analysts view this level as critical for maintaining long-term structure, with a potential risk-reward shift favoring accumulation if the base holds.
A sustained defense of this region could mark the early phase of a reversal, though confirmation would depend on a close back above the $169–$173 cluster where the 20-, 50-, and 200-day EMAs converge.
Wall Street Watches ICE's Blockchain Pivot
Intercontinental Exchange's entry into blockchain-based event markets highlights its ongoing strategy of acquiring and building infrastructure across emerging asset classes.
ICE, which owns the New York Stock Exchange, has historically expanded through ventures in digital assets, clearing, and fintech platforms.
The Polymarket deal may enhance ICE's exposure to decentralized financial technologies at a time when investor interest in prediction markets is accelerating.
Rivals such as Kalshi, recently valued at $2 billion, have recorded record volumes from sports-linked contracts in partnership with Robinhood Markets Inc. (NASDAQ:HOOD).
Key Levels To Watch
- Immediate Support: $158–$159 (long-term trendline and RSI pivot).
- Upside Resistance: $167.9 (20-day EMA), $169.36 (200-day EMA), $172.76 (50-day EMA).
- Bullish Confirmation: Breakout above $173.70 could mark a trend reversal.
- Risk Level: Breakdown below $158 may expose the $150–$144 demand zone.
Read Next:
Image: Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
