Polygon worth is vulnerable to a major drop after forming a bearish technical sample—regardless of development in its decentralized finance and stablecoin exercise.
Polygon (POL) token was buying and selling at $0.2355 on Thursday, a number of factors beneath this week’s excessive of $0.2765.
DeFi Llama information reveals 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 variety 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 information reveals that complete 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. Progress 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 information additionally reveals that the variety of weekly transactions on Polygon rose by 9% to 19.27 million, larger 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 essential 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 worth technical evaluation
The every day chart reveals that POL bottomed at $0.1500 in April after which rebounded because the broader crypto market rallied. The token has almost retested key resistance at $0.2863, the bottom degree from November final yr.
Nevertheless, the coin has slowly fashioned a rising wedge sample, outlined by two upward-sloping and converging trendlines. This sample typically indicators a possible bearish breakdown when the value nears the purpose of confluence.
If a breakdown happens, Polygon may fall to the following help degree at $0.1504, the April low, which is about 40% beneath the present worth. A decisive transfer above the $0.30 resistance degree would invalidate the bearish outlook.
