Can Polygon recover as on-chain demand fades? POL’s setup explained!

ambcryptoОпубликовано 2026-01-25Обновлено 2026-01-25

Введение

Polygon (POL) experienced a significant surge in on-chain activity and price in early January, reaching a high of $0.1866. However, this momentum was not sustained. Key on-chain metrics, including Active Addresses, Network Growth, and transaction count, have since declined to levels seen in December, indicating fading demand. The price has fallen 33% from its peak, testing the $0.12 support level. Holder behavior showed mixed signals: short-term holders took profits during the rally, while long-term holders demonstrated steady conviction. The Mean Coin Age has begun to trend upward again, suggesting accumulation is occurring. The reduced on-chain activity is a concern, and a new rally is contingent on a fresh uptick in demand.

The Polygon [POL] network saw a surge in onchain activity in the second week of January.

AMBCrypto reported that the record POL burn was due to “an all-time high for demand and single-day fees generated”.

The onchain metrics showed that short-term holders back then were in profit, and given the higher timeframe price trend of POL, this represented a threat from profit-taking pressure.

The $0.18-$0.20 area was highlighted as a potential supply zone. This has come to pass. At the time of writing, the Polygon token was trading at $0.1245, down 33.28% from the $0.1866 high it made on the 10th of January.

Decreased onchain activity reveals reduced POL demand

The daily Active Addresses metric saw a sharp spike in the second week of January, around the same time as POL’s price rally. Since then, the Active Address count has steadily declined.

Moreover, the Network Growth has also fallen over the past two weeks. The transaction count has also declined, coming back to December’s levels.

The developments of the past two weeks meant that the surge in onchain activity has not been sustainable. This could help explain the reduced demand for POL.

Holder behavior shows mixed signals

The Mean Coin Age and the 90-day Dormant Circulation moved dramatically during the POL rally earlier this month. This suggested short-term holders had taken profits during the bounce.

However, the 1-year Dormant Circulation hardly moved, showing long-term holder conviction remained steady. Since the 14th of January, the Mean Coin Age has begun to trend upward, once more signaling network-wide accumulation.

Capitulation from short-term holders was not seen either, as the 90-day Dormant Circulation remained quiet after the initial spike.

Traders and investors can keep an eye on the Dormant Circulation in the coming weeks to monitor the next wave of selling.

Overall, the slowing onchain activity was a concern. Another uptick in activity and demand for POL can drive the next rally. For now, traders and investors can keep an eye on the $0.12 support level.

Final Thoughts

The early January Polygon price and onchain activity surge were not sustained in subsequent weeks.
Long-dormant tokens woke up during the recent rally, a sign of holders selling the bounce.

Связанные с этим вопросы

QWhat was the main reason for the record POL burn in the second week of January?

AThe record POL burn was due to an all-time high for demand and single-day fees generated.

QWhat price range was identified as a potential supply zone, and what is POL's current price in relation to it?

AThe $0.18-$0.20 area was highlighted as a potential supply zone. At the time of writing, POL was trading at $0.1245, which is below that range.

QWhat do the declining metrics for Daily Active Addresses and Network Growth indicate about the Polygon network?

AThe decline in Daily Active Addresses and Network Growth indicates that the surge in on-chain activity was not sustainable and reveals reduced demand for POL.

QHow did the behavior of long-term holders (1-year Dormant Circulation) differ from short-term holders during the price rally?

AThe 1-year Dormant Circulation hardly moved, showing long-term holder conviction remained steady, while short-term holders took profits, as indicated by the movement in the 90-day Dormant Circulation.

QWhat key support level should traders and investors monitor for POL's price action?

ATraders and investors should keep an eye on the $0.12 support level.

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