Polygon (POL) Maintains Key Support Amid 100M Token Burns and Institutional Adoption

Polygon (POL) has seen a 13% rebound from February 11, with prices near $0.095 and a 5.4% gain in the past 24 hours. Institutional adoption is rising, including Franklin Templeton's tokenized mutual fund and cross-border payment solutions for the 2026 Winter Olympics according to analysis. Over 100 million POL tokens have been burned, with daily fees and app fees stable above $200k and $500k, respectively, suggesting growing demand.

Polygon's price action has shown a rebound with prices holding near $0.095. This increase has been modest compared to the 90% surge seen in January. The market remains cautious, with a flat open interest near $18.8 million, indicating limited leveraged long positions.

Institutional adoption is a significant factor in Polygon's long-term potential. Franklin Templeton's tokenized mutual fund and cross-border payment solutions during the 2026 Winter Olympics highlight the real-world applications of the blockchain. These developments are seen as indicators of growing institutional and practical integration of blockchain technology.

Polygon's token burns continue to be a focal point. Over 100 million tokens have been burned, which can reduce supply and support price growth. However, the market remains under pressure with a high exchange supply ratio of 0.003 and a stock-to-flow ratio of 8.6.

What Are the Key Price Levels to Watch for POL?

Traders are closely monitoring key price levels to determine the direction of the rally. The current support is between $0.083 and $0.087. A break below this zone would indicate unresolved selling pressure. Conversely, sustained trading above $0.106 is seen as a confirmation of the bounce.

A decisive break above $0.118 could attract leverage and weaken bearish positions. If this level is successfully flipped to support, it could set the stage for a move toward $0.135 or even $0.164 according to projections. On-chain activity, including token burns, also plays a role in managing supply and influencing price.

What Are the Long-Term Projections for POL?

Long-term forecasts for POL are optimistic, projecting significant growth by 2026 and 2030. These forecasts are driven by factors such as Total Value Locked (TVL) expansion, enterprise partnerships, and sustained network development.

By 2026, the average price is expected to reach $2.12, with a minimum of $2.07 and a peak of $2.39. In 2027, predictions suggest a minimum of $3.03 and a peak of $3.60. The growth is expected to accelerate into 2030, with an average projected price of $9.18.

The long-term potential is supported by enterprise partnerships with companies like Disney and Starbucks. These partnerships provide a qualitative foundation for quantitative models that project significant network utility and user adoption.

What Risks Are Associated With the Current Rally?

Despite the positive developments, the rally is under pressure from unresolved selling pressure and high short positions. A failure to hold the critical support level at $0.106 could lead to a major correction.

The market is in a tug-of-war, with the outcome dependent on specific levels and the flow of large coins. A decisive break below $0.083 would invalidate the current bullish setup. Conversely, a sustained move above $0.106 could confirm the rally and set the stage for further gains.

The growth of the Middle East's prepaid card and digital wallet market is also a relevant factor. The region's market is expected to expand significantly from $39.6 billion in 2025 to $63.3 billion by 2030. This growth is driven by increased adoption of digital financial services and technological advancements.

In conclusion, Polygon's price action is influenced by institutional adoption, token burns, and market dynamics. While the long-term projections are optimistic, the immediate risks include unresolved selling pressure and high short positions. Traders and investors are advised to monitor key levels and on-chain activity to gauge the direction of the rally.