Polygon Ecosystem Token (POL) is up 9.29% in 24 hours and 48.5% over the past week. This impressive performance began on January 1, when Bitcoin (BTC) and the broader crypto market began to make rapid gains.
POL has maintained its momentum over the past week, despite Bitcoin stalling. This momentum was likely fueled by developments such as the recent token burn.
On January 7, the Polygon Foundation revealed in a network update on X that POL had reached an “all-time high in terms of demand and daily fees generated.” This impressive milestone saw a record consumption of just over 3 million POL tokens (0.03% of the total supply).
News from Polygon Open Money Stack also boosted sentiment. Among other things, it will enable “seamless global movement of money for anyone, anywhere.”
POL price action is at odds with spot CVD
Source: Coinalyse
Data from Coinalyze showed that the last few days saw a sharp decrease in spot POL CVD. Open interest more than doubled from $37 million to $92 million, but the drop in spot CVD indicated a divergence between price and spot demand that could signal near-term exhaustion.
Source: Santiment
Onchain data showed that 90-day holders had returned to profit, which could add to profit-taking pressure in the coming days. The average coin age has remained stagnant and MVRV’s rise into positive territory could serve as a warning to traders.
Source: POL/USDT on TradingView
The 1-day chart shows strong bullish momentum and strong buying pressure over the last ten days. CMF has shown strong buying pressure and trading volume has also been well above the 20-day moving average recently.
The RSI reached the highest values over this period since November 2023.
The $0.18 and $0.20 were the nearby supply zones to watch. In particular, the $0.20 level could play a crucial role. A daily session close above this level would represent a change in bullish structure and a clear buying opportunity for long-term investors.
Final Thoughts
- The POL rally is expected to extend higher in the coming days.
- Resistance at $0.20 is one to watch, especially if the average coin age begins to drop, signaling increased token movements and profit-taking activity.
