Polygon price remained in a narrow range on Wednesday despite the network announcing major partnerships with top companies like Visa and Mastercard. The POL token was trading at $0.0916, inside a range it has been at in the past few weeks.
Polygon Makes Major Deals With Visa and Meta Platforms
POL token wavered as investors reacted to the latest Polygon news, including its partnership with Visa, the biggest fintech company in the world. Visa added it to the $7 billion stablecoin settlement network, a move that will lead to more transactions and more network fees.
In another note, Polygon noted that it was selected by Meta Platforms to power its payouts to creators. This is a major announcement as Meta Platforms is one of the biggest companies in the world with a market capitalization of over $1.6 trillion. It also handles billions of dollars in creator payments a year.
These companies join other blue-chips like Stripe, Revolut, and Shift4 Payments, which are using its network for transactions.
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As a result, it has become one of the fastest-growing networks in the crypto industry, with its stablecoin business continuing to thrive. Data shows that it handled over $37 billion in the last 30 days, with the number of transactions soaring to over 633 million.
The network is also making substantial sums of money. Data shows that its network generated over $11 million in the first quarter, up sharply from $2.1 million in the previous quarter. In contrast, most chains, including popular names like Ethereum, Solana, and Base recorded a big drop in fees.
The rising fees is important for the token as it boosts its token burn rate. A token burn is a situation where coins are removed from circulation, which, in theory, should boost their value.
Polygon Price Prediction: Technical Analysis
The daily timeframe chart shows that the POL price has moved sideways in the past few weeks. A closer look shows that it has formed a double-bottom pattern at $0.0837. A double-bottom pattern normally leads to a strong bullish breakout.
The token is also in the accumulation phase of the Wyckoff Theory, which results in a strong bullish breakout. Also, the three lines of the Bollinger Bands have narrowed, meaning that it may spike in the near term.
If this happens, the next key target to watch being at $0.1184, its highest point on February 2nd. This target is 28% above the current level. On the flip side, a move below the support at $0.083 will invalidate the bullish outlook.
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