Polygon price has crashed to an important support level despite major network growth. POL token was trading at $0.1645, its lowest point since October 11. This price is a few points above the year-to-date low of $0.1500.
Polygon Transactions are Soaring
Nansen data shows that the number of transactions on the Polygon network has continued to rise over the past few months. Data shows that the number of transactions in the network rose by 70% to over 118 million. These numbers make it one of the most active layer-2 networks in the industry.
Polygon’s active addresses have soared by 21% to over 7.6 million, higher than Arbitrum’s 3.7 million. Additionally, the network’s fees jumped by 64% to $684k.
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Polygon has benefited from the ongoing growth of its decentralized finance (DeFi) ecosystem. Its TVL has jumped to $1.27 billion, up sharply from the year-to-date low of $780 million. This growth was driven by some top players in the ecosystem, like Securitize, QuickSwap, Polymarket, and Uniswap.
Polygon price has plunged despite Polymarket’s ongoing growth, which has made it a major player in the prediction market. It has also benefited from the amount of stablecoins in the network jumping by 3.1% over the last 7 days to over $3.2 billion.
Additionally, the network’s DEX has jumped to over $300 million, up from this week’s low of $200 million. The top DEX networks in the ecosystem are Uniswap, Quickswap, and WOOFI.
Polygon Price Technical Analysis
The daily timeframe chart shows that the POL price has been in a strong bearish trend since peaking at $0.2975 in September.
Polygon has remained below all moving averages, a sign that bears are in control. It has remained below the Supertrend indicator. Also, it moved below the Ichimoku cloud indicator.
Most importantly, the coin is hovering above key support at $0.1500, a level it has not fallen below since April. It has also formed an inverse cup-and-handle pattern.
Therefore, the token will likely continue to fall as sellers target the psychological level of $0.100. A move above the $0.20 resistance will invalidate the bearish outlook.
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