Polygon price moved sideways and formed a highly bullish pattern, pointing to an eventual comeback as key ecosystem metrics improve. The POL token was trading at $0.1890 on Wednesday, a few points higher than the year-to-date low of $0.1647.
Polygon Ecosystem is Recovering
Polygon, the first prominent layer-2 network, has experienced a rough patch over the past few months. The most difficult one was its decision to shut down its zkEVM product that it acquired for $250 million a few years ago.
Polygon has also lost a substantial market share in the layer-2 industry to prominent players such as Arbitrum, Optimism, Base, and Unichain. These platforms have become some of the fastest-growing players in the crypto industry.
For example, Robinhood recently selected Arbitrum as its blockchain of choice for stocks tokenization. It will also use its technology to launch its standalone layer-2 chain.
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Recently, however, there have been signs that the Polygon network is improving. For example, the active addresses on Polygon jumped by 25% in the last 30 days to 7.6 million. Its transactions also rose by 47% in the same period to 95.1 million.
More data reveals that Polygon’s total value locked (TVL) has increased by 10% over the last 30 days to exceed $1.27 billion. This is a sign that investors are opting for its chain in certain industries, such as lending and predictions.
Polygon is also a major player in the Real-World Asset (RWA) tokenization industry, where it has a TVL of $343 million. Only Ethereum, zkSync, Aptos, Stellar, and Solana are bigger.
Polygon was also the second-biggest chain in the non-fungible token (NFT) industry in the past 30 days. It handled over $90 million in volume, making it second only to Ethereum, with Courtyard being the most popular collection.
Additionally, Polygon is one of the most notable chains in the stablecoin industry. It has a stablecoin supply of $2.5 billion, up by 5.45% in the last 30 days, as the number of transactions rose by 92%.
Polygon Price Technical Analysis

The daily chart shows that the POL price has been in a strong bearish trend since December last year. It formed a double-bottom pattern at $0.1647, a popular reversal sign.
Polygon price’s double bottom has a neckline at $0.2763, its highest swing point on May 10. This neckline was also slightly below the 23.6% retracement level.
Therefore, the coin will likely bounce back as long as it remains above the support at $0.1647. A move below that level will indicate further downside, potentially to the psychological level at $0.1500.
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