Polygon [$POL] gained 5% in the past 24 hours before slightly retracing as of writing. The daily trading volume is around $50 million, with liquidity increasing from a volume-to-market-cap ratio of 5.44%.
The main driver of this resurgence in $POL’s price action is the thriving network activity. Whales have also been pumping capital into the altcoin over the past few days.
Polygon transaction activity hits a month’s peak
Polygon processed nearly eight million transactions in a day, the highest daily transaction count this month.
To be specific, the figure is slightly over 7.95 million but has since started to decline. However, the volume is still significant, as it is averaging above 7 million per day.
In total, Polygon has processes over 7.54 billion transactions since it was launched. The activity has skyrocketed with the launch of payment infrastructures. Polygon now supports over 5,000 payments per second.
Source: Chainspect
At the same time, $POL’s stablecoin supply has been growing, with the market cap standing above $3.45 billion. Notably, Polygon has become the eighth largest network in terms of stablecoin market cap. However, the network has only 102 validators, which has raised questions around decentralization.
However, decentralization is not only determined by the validator count but also by who controls them, stake distribution, governance structure, and validator diversity.
Are whales loading $POL tokens?
In terms of capital inflow, whales seem to be buying the altcoin.
According to Arkham, a wallet deposited about $310K in USDC into FalconX. The wallet then bought 6 million $POL tokens worth $474K at an average price of $0.07899.
Source: Arkham
This move indicates accumulation in the hope that the current uptrend will continue. Otherwise, Polygon could be using FalconX to facilitate token sales.
Can $POL price extend its two-day rally?
Polygon’s price has broken above a horizontal resistance at $0.08135, which had previously kept the altcoin in a sideways range. The support level of this range is $0.07232. At press time, the Relative Strength Index (RSI) was rising with a reading of 70, suggesting buying activity. The Bull Bear Power (BBP) indicator also confirmed buyer strength.
If the price stays above the $0.08135 level, it could reach a target of $0.09511. However, there is a resistance hurdle at $0.08806.
Source:
$POL/USDT on TradingView
Conversely, a break below the $0.08135 zone would mean more consolidation or decline. With network activity rising and whale capital flowing in, then, $POL price may print higher highs.
Final Summary
- The Polygon network has processed around 8 million, with the total count reaching 7.54 billion and 102 validators.
- $POL has broken above a sideways consolidation, but only staying above $0.080 can mean more appreciation.
