Polygon (POL) forms a buy signal, on-chain activity accelerates

Polygon (POL) tokens are currently trading at $0.15, continuing to decline significantly from last month’s high. However, the rapid increase in on-chain transaction activity and user numbers suggests a potential bottoming out.

Bullish signals indicated by network metrics

According to data from Nansen, Polygon has recorded the second-highest growth rate among blockchains over the past 30 days. The number of transactions on the network has increased by 90%, reaching 172 million, far surpassing Arbitrum’s 79 million and Ethereum’s 47.2 million.

An additional noteworthy point is that the number of active addresses has also increased by 30%, reaching 14.2 million. This figure is exceptionally high compared to major blockchains like Arbitrum, Aptos, and Ethereum. Currently, there are 1,264,994,143 addresses holding assets within the Polygon ecosystem, indicating that many users, including degen investors (meaning high-risk, speculative crypto traders), are participating.

Continued expansion in real-world usage

This network prosperity is further supported by integrations with major companies such as Stripe, Shift4, and Revolut. Payments processed through the Stripe platform have exceeded $70 million, with further growth expected.

Data from DeFi Llama shows that DEX protocols on Polygon have processed $210 million in the past 24 hours and $5.72 billion over the past 30 days.

Signs of technical recovery

Looking at the daily chart, the POL token has fallen 85% from $0.766 in November last year to its current price. However, technical indicators are beginning to show signs of recovery.

Current price movements suggest that the token is forming a descending wedge, which is known as a buy signal. The upper and lower trendlines of the wedge are converging, indicating a possible bullish breakout soon.

Additionally, key oscillators such as the Relative Strength Index (RSI) and the Price Percentage Oscillator are starting to turn upward, and bullish divergence is also forming.

After facing resistance at $0.2970 in September, the chart pattern now suggests a high likelihood of a recovery toward the $0.1520 resistance level. Breaking through this level would confirm a bullish signal and could mark the start of a further upward trend.