POL has rallied 9.29% in the last 24 hours and was up 48.5% over the past week, a rally that began on January 1 as Bitcoin and the broader crypto market moved higher. POL has sustained its momentum over the past week, despite Bitcoin’s stall, a momentum likely driven by developments such as the recent token burn. On January 7, the Polygon Foundation revealed in a network update that POL had reached an all-time high for demand and single-day fees generated, accompanied by a record burn of just over 3 million POL tokens (0.03% of the total supply). The Polygon Open Money Stack news has boosted sentiment, and it will enable seamless global money movement for anyone, anywhere.
Coinalyze data shows a sharp decline in POL spot CVD over recent days, even as Open Interest more than doubled from $37 million to $92 million, signaling a divergence between price action and spot demand that could indicate near-term exhaustion. Santiment data indicate 90-day holders are back in profit, which could add to profit-taking pressure, while the mean coin age remains stationary and the MVRV ratio rising into positive territory could warn traders. The 1-day chart shows strong bullish momentum and buying pressure, with CMF high and trading volume well above the 20-day moving average; the RSI has reached the highest values on this timeframe since November 2023.
Nearby supply zones are $0.18 and $0.20, with the $0.20 level likely pivotal; a daily close above this level would signal a bullish swing and create a buying opportunity for long-term investors. Final thoughts suggest the POL rally is likely to extend higher in the coming days, with the $0.20 resistance to watch and mean coin age declines signaling increased token movement and potential profit-taking activity.
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