In recent days, the price of Polygon has gradually recovered as the number of active addresses on the network increases.
Polygon (POL) reached an intraday peak of $0.2460, marking its highest point since March 9 and representing a 24% rise above its all-time low. However, it still sits approximately 70% below its record high from November of last year.
This resurgence in Polygon’s price can largely be attributed to the rebound in Bitcoin (BTC) and several other altcoins, including Solana (SOL) and Binance Coin (BNB), which have also seen gains recently.
Additionally, this upturn coincides with a rise in on-chain activity. According to data sources, the number of active addresses on the Polygon network has grown by 13% over the past week, reaching 2.34 million. Transaction volume has also increased to 20.7 million.
Further statistics indicate stabilization in Polygon’s decentralized finance (DeFi) landscape. The total value locked (TVL) within the network has climbed by 5.7% in the last week, bringing it to $719 million. Meanwhile, the bridged TVL surpassed $4.64 billion, and the total amount of stablecoins in the ecosystem approached nearly $2 billion.
A significant portion of this TVL increase can be attributed to Quickswap, which saw its weekly TVL skyrocket by 577% to $103.8 million. Other decentralized applications like Morpho Blue, Aura, and KlimaDAO have also experienced notable capital influxes in the past few days.
Despite these positive developments, Polygon faces challenges as competition in the layer-2 sector escalates. Even with the recent price rise, its TVL remains well below its all-time high of nearly $10 billion.
Layer-2 blockchains such as Base and Arbitrum have surpassed Polygon in DeFi TVL, NFT trading volume, and decentralized exchange activity. For instance, available data shows that Polygon’s decentralized exchange networks managed only $3 billion over the past 30 days, while Arbitrum and Base handled $23 billion and $21 billion, respectively.
Polygon Price Analysis
An analysis of the daily chart reveals that the POL price reached a peak of $0.7687 following its transition from MATIC, before dropping to a low of $0.1900 this month. The coin is currently exhibiting a bullish divergence pattern, as indicated by upward movements in both the Relative Strength Index and the MACD indicator.
Moreover, Polygon has surpassed the upper boundary of a falling wedge pattern, which is widely regarded as a reliable bullish reversal signal in technical analysis. As a result, the price of Polygon is likely to continue its ascent, with bullish traders targeting a retest of the significant resistance at $0.2854, noted for being the lowest level recorded on November 4. Conversely, a decline below the support level at $0.1901 would invalidate this optimistic outlook.