Polygon Price Eyes Breakout as Ecosystem Strengthens

The Polygon (POL) token has been on a tear, jumping for seven straight days to reach its highest level since July 23. This strong uptrend is backed by significant improvements in its ecosystem, including DeFi, stablecoin, and NFT growth.

DeFi, Stablecoin, and NFT Growth

Third-party data points to strong gains in the network. According to CryptoSlam, sales in Polygon’s non-fungible ecosystem rose by 53% in the last 30 days to $17.8 million, led by Courtyard.

In addition to NFT growth, the stablecoin supply in the Polygon network jumped by 6.35% in the last 30 days to $2.6 billion. Most of these stablecoins are USDC, followed by Tether’s USDT. The adjusted transaction volume of stablecoin in the network surged by 70% to $38.5 billion, driven by a 4.68% increase in stablecoin transactions to 95.1 million.

Users Flock to Polygon

Users are drawn to Polygon and other layer-2 platforms due to their substantially lower transaction costs and faster execution times. This has contributed to the growth of the network and, subsequently, the POL token.

Challenges Ahead

However, Polygon faces a challenge: while it was the first mainstream layer-2 network, newer contenders have taken market share. Base, the L2 network owned by Coinbase, has $4.2 billion in stablecoins, while Arbitrum has $4 billion. Polygon must continue to innovate and improve to stay ahead of the competition.

Polygon’s DeFi Ecosystem

Polygon’s DeFi ecosystem is also performing well, with its total value locked increasing by 10.9% over the last 30 days to $1.35 billion. This growth is a testament to the network’s strength and potential for further expansion.

Polygon Price Technical Analysis

The daily chart indicates that the POL price has remained relatively stable over the past few months, stuck between key support and resistance levels at $0.1655 and $0.2620 since March.

However, the POL price has moved above the 50-day Exponential Moving Average, while the MACD and the Relative Strength Index have pointed upwards. It is also nearing the 23.6% Fibonacci Retracement level.

Bullish Outlook

Therefore, the token will likely continue rising as bulls target the key resistance at $0.3858, up by 52% from the current level. These gains will be confirmed if it moves above the resistance at $0.2620.

Alternative Scenario

The alternative scenario is where the Polygon token pulls back and retests the support at $0.1655. If this occurs, it will be essential to monitor the token’s performance and adjust expectations accordingly.

Overall, the future looks bright for Polygon, with its ecosystem strengthening and technical indicators pointing upwards. As the token approaches its make-or-break level, investors will be watching closely to see if it can break out and reach new heights.