Polygon Surpasses $0.27 as Network Activity and USDT Upgrade Fuel Bullish Momentum

Polygon’s native token, POL, surged 12.72% to $0.2736 in recent trading, marking a three-month high. The rally followed a critical support level at $0.23, with on-chain metrics and network activity signaling renewed interest and buyer participation. Over the same period, trading volume on POL increased by 34% to $315.7 million, while the asset’s market capitalization approached $2.8 billion [1].

According to Artemis data, network demand for the blockchain has surged, with active addresses rising by 25% to 665,000, up from 447,000. This increase in on-chain activity was accompanied by a 7.9% rise in daily transactions to 4 million, suggesting growing usage of the Polygon network [1]. Analyst Dhee on X attributed part of this growth to a recent upgrade of Polygon’s PoS USDT to the USDT0 standard, which improved transaction efficiency and increased its dominance in USDT0 address activity [1].

Sealunch data also showed that Polygon outperformed Arbitrum in transacting addresses, with 780,000 on the 18th of August compared to Arbitrum’s 492,000 [1]. Additionally, Polygon’s role in Singapore’s stablecoin ecosystem appears to be expanding. Over the past four months, the network processed $66 million, $88 million, $74 million, and $94 million in XSGD transfers, according to analyst Petertherock [1]. These figures suggest that Polygon is becoming a significant player in stablecoin infrastructure, particularly in Asia.

Buyer accumulation became evident as POL dipped to $0.23. According to Coinalyze, buying volume reached 86.7 million, compared to 70.6 million in selling volume, resulting in a net Buy–Sell Delta of 16.1 million. This marks two consecutive days of net buying, indicating a potential bottoming process [1]. However, Santiment data revealed that the ratio of daily on-chain transaction volume in profit to loss had spiked to 3.24, signaling increased profit-taking activity. This trend implies that for every losing transaction, there are 3.2 profitable ones, which could presage a pullback or correction as holders lock in gains [1].

Exchange-based activity also reflected growing selling pressure. CoinGlass reported that Polygon Network’s Spot Netflows were positive for two consecutive days, with net inflows standing at $929,000 at press time, down from $2.02 million the previous day [1]. While the decline suggests a slowdown in selling pressure, it remains a key indicator of capital movements within the ecosystem.

Technical indicators remain bullish for POL. AMBCrypto noted that the Relative Strength Index (RSI) climbed to 61, indicating strengthening momentum. The Directional Movement Index showed the Positive DI at 24 compared to the Negative DI at 20, underlining buyer dominance [1]. If this momentum continues, the next key resistance level is $0.28, with a potential target of $0.30. Conversely, a breakdown below $0.235 support could push prices down to $0.247, reinforcing the importance of monitoring these levels for the next major move [1].

Source: [1] Assessing Polygon's 12% comeback: 2 key levels for POL's next move (https://ambcrypto.com/assessing-polygons-12-comeback-2-key-levels-for-pols-next-move/)