Assessing Polygon’s rally as record burns collide with POL’s profit-taking risks

ambcryptoPublished on 2026-01-11Last updated on 2026-01-11

Abstract

Polygon's POL token has surged 48.5% over the past week, with a 9.29% gain in 24 hours, riding the momentum of a broader crypto market rally that began in January. This upward trend was supported by key developments, including a record single-day burn of 3 million POL tokens and positive sentiment around the Polygon Open Money Stack initiative. However, on-chain data reveals a potential risk from profit-taking, as 90-day holders are now in profit. While the price chart shows strong bullish momentum with high buying pressure and a rising RSI, a sharp decline in the spot Cumulative Volume Delta (CVD) indicates a divergence that may signal short-term exhaustion. Key resistance levels to watch are $0.18 and $0.20. A daily close above $0.20 could confirm a bullish structure shift, but increased token movement and profit-taking could pose challenges. The rally is expected to continue, though caution is advised these key levels.

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.

Related Questions

QWhat was the percentage increase in Polygon's POL token over the past 24 hours and the past week?

APOL rallied 9.29% in 24 hours and was up 48.5% over the past week.

QWhat key event on January 7th contributed to POL's positive momentum, according to the Polygon Foundation?

AThe Polygon Foundation announced that POL reached an all-time high for demand and single-day fees generated, which included a record burn of just over 3 million POL tokens (0.03% of the total supply).

QWhat does the sharp decrease in the POL spot CVD (Cumulative Volume Delta) suggest about the recent price action?

AThe fall-off in spot CVD indicated a divergence between price and spot demand, which could signal short-term exhaustion in the rally.

QWhy could the fact that 90-day holders are back in profit pose a risk to POL price?

AIt could add to profit-taking pressure in the coming days, as these holders may decide to sell their tokens to realize their gains.

QWhat is the significance of the $0.20 price level for POL, according to the technical analysis?

AThe $0.20 level is a pivotal resistance. A daily session close above it would represent a bullish swing structure shift and a clear buying opportunity for long-term investors.

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