Polygon Ecosystem Token [POL] has rallied 9.29% in 24 hours and was up 48.5% over the past week. This impressive performance began on the 1st of January, when Bitcoin [BTC] and the wider crypto market started to make quick gains.
POL has sustained its momentum over the past week, despite Bitcoin’s stall. The momentum was likely driven by developments such as the recent token burn.
On the 7th of January, the Polygon Foundation revealed in a network update on X that POL had reached an “all-time high for demand and single-day fees generated”. The impressive milestone saw a record burn of just over 3 million POL tokens (0.03% of the total supply).
The Polygon Open Money Stack news has also boosted sentiment. Among other things, it will enable “seamless global money movement enabled for anyone, anywhere”.
The POL price action is at odds with the spot CVD
Coinalyze data showed that the past few days saw a sharp decrease in the POL spot CVD. The Open Interest has more than doubled from $37 million to $92 million, but the fall-off in spot CVD indicated a divergence between price and spot demand that could signal short-term exhaustion.
Onchain data showed that 90-day holders were back in profit, which could add to the profit-taking pressure in the coming days. The mean coin age remained stationary, and the MVRV’s ascent into positive territory could be a warning for traders.
The 1-day chart showed strong bullish momentum and buying pressure over the past ten days. The CMF showed high buying pressure, and the trading volume has also been well above the 20-day moving average recently.
The RSI has reached the highest values on this timeframe since November 2023.
The $0.18 and the $0.20 were the nearby supply zones to watch out for. In particular, the $0.20 level is likely to be pivotal. A daily session close above this level would represent a bullish swing structure shift and a clear buying opportunity for long-term investors.
Final Thoughts
- The POL rally is likely to extend higher in the coming days.
- The $0.20 resistance is one to watch, especially if the mean coin age begins to fall to signal increased token movement and profit-taking activity.
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