Key Insights
- Polygon value has moved to the oversold territory this 12 months.
- The variety of transactions within the community are surging.
- Polygon’s stablecoin and DEX development is accelerating.
Polygon value crashed to the bottom degree this 12 months, erasing billions of {dollars} in worth. The POL token plummeted to a low of $0.1318 on Monday, down 82% from its December excessive and 55% beneath its highest level this 12 months. This crash occurred even as community development accelerated.
Polygon Price Has Moved to Oversold Zone
The each day timeframe chart exhibits that the POL value has been in a robust downward development this 12 months. Bears have consistently overpowered bulls anytime it tried to rebound.
POL, beforehand identified as MATIC, has not too long ago crashed beneath the essential assist at $0.1517, its lowest swing in April and October this 12 months. Transferring beneath that degree confirmed that bears are in management.
The coin stays beneath the 50-day Exponential Transferring Common (EMA), which is a extremely bearish signal. It additionally stays beneath the Supertrend indicator, whereas the Common Directional Index (ADX) has reached its highest degree this 12 months at 44. A excessive ADX a number of signifies that an asset’s development is strengthening.
Alternatively, the Relative Power Index (RSI) and the Stochastic Oscillator have moved to the oversold ranges. The RSI has dropped to twenty-eight, whereas the 2 traces of the Stochastic have moved to the acute oversold ranges.
Subsequently, these oscillators probably level to a rebound within the subsequent few weeks. If this occurs, the following essential goal degree to look at shall be on the psychological level at $0.20, which is ~48% above the present degree. This rebound will solely occur if there’s a broader crypto market rally.
Polygon Ecosystem is Doing Nicely
The continued Polygon value crash is going on even as the community development accelerates. Knowledge compiled by Nansen exhibits that Polygon is without doubt one of the fastest-growing gamers within the layer-1 and layer-2 trade.
The info present that the variety of energetic addresses elevated by 60% over the past 30 days, reaching over 10.6 million. Transactions within the community soared by 80% to 135 million, whereas the quantity of charges collected jumped by 45% to $875k.
A few of these numbers imply that it has overtaken Base and Arbitrum, its largest opponents. For instance, whereas Base’s transactions rose to 397 million, its energetic customers had been 8.4 million. In the meantime, Arbitrum’s transactions dropped by 108% to 70.9 million, whereas its energetic addresses fell by 14% to three.3 million.
Subsequently, there are indicators that Polygon is bridging the hole with its high opponents when it comes to development.
Stablecoin and DEX Development
In the meantime, the quantity of stablecoins within the community jumped to a file excessive of $3.2 billion. Most of those tokens, price about $1.16 billion, are Circle’s USDC, whereas Tether (USDC) is price over $921 million.
One purpose for the continued development of stablecoins is that Polygon powers Polymarket, one of many high gamers within the prediction market. DeFi Llama information point out that Polymarket’s whole worth locked (TVL) has elevated by 13% over the past 30 days, reaching over $261 million.
Moreover, Polygon’s DEX ecosystem is doing properly, due to Polymarket, Quickswap, Uniswap, and WOOFi. Polymarket dealt with over $141 million in transactions within the final 24 hours, bringing its 30-day quantity to $3.7 billion. QuickSwap and Uniswap dealt with $1.66 billion and $2.41 billion within the earlier 30 days, bringing Polygon’s transaction quantity this month to $6.56 billion.
Notably, Polygon has emerged as a major participant within the real-world asset (RWA) tokenization trade. It has a TVL of $761 million, making it the fifth-biggest chain within the trade after Ethereum, BNB Chain, Avalanche, and Solana. BlackRock’s BUIDL is the most important RWA asset within the community.
Abstract
It is not uncommon for a cryptocurrency token to crash even when its underlying community is performing properly. example of this is Avalanche, which has tumbled to the year-to-date low regardless of its community development accelerating. Polygon can also be in the identical state of affairs, the place the market will not be appreciating its fundamentals. This might change now that the Polygon value has moved to the oversold degree.
Crispus is a distinguished Monetary Analyst at, bringing over 12 years of experience in cryptocurrency markets, specializing in Bitcoin and altcoins. Famend for his sharp insights on the nexus of market developments and breaking information, Crispus delivers actionable evaluation to empower buyers. His work is prominently featured throughout main platforms, together with BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his status as a trusted voice within the monetary world.
