Polygon [$POL] is up by more than 31% in the past 24 hours, but bulls appear not to be holding onto the new strength in the crypto market. At the time of press, Polygon’s 31% gains had dropped to about 18%, while daily trading volume surged 133% to about $365 million.
Network activity has been the key driver of Polygon, supported by a broader, stronger risk-on sentiment in the crypto markets. But can $POL bulls keep buying the token and sustain this rally?
Why is Polygon surging so hard?
Getting into the details, Polygon’s Transaction Count rose from 407 to 2,606 over this week, aligning with the price recovery. This was equivalent to more than 6x growth.
Even so, Active Addresses doubled over the same span, rising from 161 to 286. This reading reinforced consistent network usage.
The chain’s DEX and Perps volume have also continued to rise sharply. On the 9th of August, DEX volume was at $50 million, while Perps volume was at $91K.
Two weeks later, DEX volumes have increased fivefold to $240 million, while Perps have surged by 8.6x.
Fundamentally, they increased their stablecoin settlements, which is their main business currently. Polygon integrated the settlement of Frax’s frxUSD-based FX pools, making multi-bank currency conversion nearly instant.
However, USDC remains the dominant stablecoin on the chain with a 54% share. Its stablecoin market cap grew to $3.035 billion, as per DefiLlama.
As a result, chain fees have grown from $60K to over $90K over the same period.
Can bulls continue buying past $0.12?
On the charts, $POL was trading above $0.085, the neckline of an inverted heads-and-shoulders pattern. This indicated that the altcoin’s market structure was shifting to bullish.
However, $POL was facing resistance around $0.12, as bears at this supply zone reduced the gains. Such conditions could force a correction so as to find strength before moving toward $0.18.
The MACD has turned green, indicating bulls are still in control. The CVD showed that net trading activity was buying, with over 46 million $POL tokens withdrawn from the Binance spot market.
Despite the bullish activity, the instant rejection at $0.12 hinted at a potential pause in the intense buying activity. That could result in a correction but remains bullish unless the $0.085 support is lost.
Final Summary
- Polygon surged over 31% in the past 24 hours, driven by a stronger crypto market and growing network activity.
- Polygon broke above a bottoming pattern, but its uptrend toward $0.18 faces resistance at $0.12.