Polygon price is at risk of a vital drop after forming a bearish technical sample—despite development in its decentralized finance and stablecoin exercise.
Polygon (POL) token was buying and selling at $0.2355 on Thursday, a few factors beneath this week’s excessive of $0.2765.
DeFi Llama data exhibits that the quantity of stablecoins in its ecosystem has continued to rebound this month. Stablecoin provide has risen to $1.98 billion, up from the year-to-date low of $1.67 billion. In the meantime, a report by Messari famous that the stablecoin provide on the community jumped by 23% within the first quarter, whereas the quantity of lively stablecoin wallets rose by 30%. DAI holds a 47% market share on Polygon, adopted by USD Coin (USDC) and Tether (USDT), with 31% and 13% shares, respectively.
Further knowledge exhibits that whole worth locked on the Polygon community is making a sluggish restoration. TVL stands at $1.03 billion, up from the year-to-date low of $736 million. Development has been much more notable in POL phrases, with the determine rising to 4.35 billion POL from 1.86 billion POL in January.
Nansen knowledge additionally exhibits that the quantity of weekly transactions on Polygon rose by 9% to 19.27 million, greater than Arbitrum’s (ARB) 12 million.
Decentralized exchanges transactions on Polygon rose by 48.46% within the final seven days to nearly $1 billion.
Polygon’s foremost problem is that it has continued to lose market share to newer layer-2 networks like Unichain, Base, and Arbitrum. For instance, Unichain, which was launched in February, dealt with over $3.8 billion in transactions.
Polygon price technical evaluation
The every day chart exhibits that POL bottomed at $0.1500 in April after which rebounded because the broader crypto market rallied. The token has practically retested key resistance at $0.2863, the bottom degree from November final 12 months.
Nonetheless, the coin has slowly shaped a rising wedge sample, outlined by two upward-sloping and converging trendlines. This sample typically indicators a potential bearish breakdown when the price nears the purpose of confluence.
If a breakdown happens, Polygon might fall to the subsequent assist degree at $0.1504, the April low, which is about 40% beneath the present price. A decisive transfer above the $0.30 resistance degree would invalidate the bearish outlook.
