Polygon price has slumped for two consecutive days, moving from a high of $0.1860 on Saturday to the current $0.1520. It has dropped by nearly 20% as investors booked profits after soaring by over 80% from its lowest level on January 1.
Polygon price slips after a strong rally
POL price has been in a strong bull run in the past few days, moving from a low of $0.098 on January 1 to a high of $0.1860. This surge coincided with several notable improvements in its network and ecosystem.
Data compiled by Nansen shows that Polygon is one of the fastest-growing players in the blockchain industry. Its fees jumped by 178% in the last 30 days to $2.2 million, much higher than what other popular networks made in the same period.
For example, Stellar made $76,000 in fees, while Optimism and Avalanche made $60,000 and $254,000 in the same period, respectively. Polygon’s fees are also higher than other layer-2 networks like Base and Arbitrum.
The soaring fees have increased the token’s burn rate, which has soared this month as its usage accelerated. The network is burning millions of tokens each day, removing them from circulation.
A key aspect about ongoing Polygon’s growth is that it is spread across various industries and dApps. For example, the network has become a major player in the payment industry, where it has partnered with some of the biggest companies in the industry, like Revolut, Shift4, Stripe, and Mastercard.
The company has announced an Open Money Stack, which will make it easier for companies to move money around the world with lower transaction costs.
Stablecoin growth has continued
Meanwhile, the network has become a major player in the stablecoin industry. Data shows that the network handled over $29 billion in transactions in the last 30 days as the number of stablecoin addresses soared to over 5 million.
Polygon handled over 268 million transactions in the last 30 days, a figure that will likely continue growing in the coming months.
Polygon is also a dominant player in the prediction market that has boomed in the past few years. Data shows that Polymarket, which leverages Polygon’s technology, handled over $662 million in the last 7 days, making it the second-biggest platform in the industry after Kalshi.
Polygon’s DEX volume has also been in a strong uptrend in the past few months, with the DEX volume soaring to $5.8 billion in the last 30 days. Its volume rose to $234 million in the last 24 hours, higher than Arbitrum’s $219 million.
Polygon also has better tokenomics than other networks as it has no future planned token unlocks. This is unlike other networks like Arbitrum and Aptos that unlock millions of tokens a day.
Polygon crypto price technical analysis
The daily timeframe chart shows that the POL price has crashed in the past two consecutive days, moving from a high of $0.1860 to the current $0.1550.
It has moved below the 38.2% Fibonacci Retracement level and is now approaching the Strong, Pivot, Reverse of the Murrey Math Lines tool.
On the positive side, the coin has remained above the Supertrend indicator and the 50-day Exponential Moving Average (EMA).
Therefore, the token will likely remain under pressure in the near term and then it will rebound later this week. If this happens, the initial target price will be the year-to-date high of $0.1860.
A move above that level will point to more gains, potentially to the 61.8% retracement level at $0.2200, which is 40% above the current level. However, a move below the support level at $0.1400 will invalidate the bullish outlook.
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