Polygon price nears make-or-break level as its ecosystem rebounds
Polygon price continued its strong uptrend and approached its make-or-break level as its ecosystem improved.
- POL price has rebounded in the past few days as cryptocurrencies rally.
- The stablecoin supply in the Polygon network has soared.
- The total value locked in its decentralized finance has jumped.
Polygon (POL) token jumped for seven straight days, reaching its highest level since July 23.
DeFi, stablecoin, and NFT growth
The POL price continued its strong rally as third-party data pointed to strong gains in the network. CryptoSlam numbers show that the sales in its non-fungible ecosystem rose by 53% in the last 30 days to $17.8 million, led by Courtyard.
More data shows that the stablecoin supply in the Polygon network jumped by 6.35% in the last 30 days to $2.6 billion. Most of these stablecoins are USDC followed by Tether’s USDT.
The adjusted transaction volume of stablecoin in the network jumped by 70% to $38.5 billion. This surge occurred as the number of stablecoin transactions on the network increased by 4.68% to 95.1 million.
Users love Polygon and other layer-2 platforms due to their substantially lower transaction costs and faster execution times.
Polygon’s challenge is that, while it was the first mainstream layer-2 network, newer contenders have taken market share. Base, the L2 network owned by Coinbase, has $4.2 billion in stablecoins, while Arbitrum has $4 billion.
Polygon’s DeFi ecosystem is also performing well, with its total value locked increasing by 10.9% over the last 30 days to $1.35 billion.
Polygon price technical analysis
The daily chart indicates that the POL price has remained relatively stable over the past few months. It has remained inside the key support and resistance levels at $0.1655 and $0.2620 since March.
Polygon price has moved above the 50-day Exponential Moving Average, while the MACD and the Relative Strength Index have pointed upwards. It is also nearing the 23.6% Fibonacci Retracement level.
Therefore, the token will likely continue rising as bulls target the key resistance at $0.3858, up by 52% from the current level. These gains will be confirmed if it moves above the resistance at $0.2620.
The alternative scenario is where the Polygon token pulls back and retests the support at $0.1655.
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