The Polygon network reported significant stablecoin transfer activity and a growing number of stablecoin addresses, marking a network growth milestone. Concurrently, a burn of 25.9 million POL tokens tightened supply, with further burns planned. Despite this, technical analysis indicates a prevailing bearish trend, with short-term price action showing a recent rejection at a key resistance level.
The Polygon network achieved a milestone in stablecoin transfers, accompanied by high trading activity and an increase in stablecoin addresses. The network also executed a 25.9 million POL token burn, with plans for more to reduce circulating supply.
On a one-day chart, Polygon retains a long-term bearish bias despite a recent bounce above $0.10. The price was rejected at a local resistance of $0.119 before reversing in lower timeframes.
However, the Accumulation/Distribution indicator reached new local highs, signaling buyer strength. Sustained pressure could fuel a rally toward a retracement level at $0.1646.
The $0.135 level is expected to present a significant obstacle for short-term buyers. This outcome would become more likely if the $0.119 level is flipped from resistance to support.
Despite the network activity, short-term selling pressure may persist. A one-hour chart revealed the struggle bulls faced at the $0.119 resistance.
A high-volume rally on Saturday suggested a potential breakout, but was met with an equally high-volume sell-off. The immediate rejection meant the move only succeeded in grabbing the liquidity clustered around $0.11-$0.12.
The lower timeframe’s market structure turned bearish again, with moving averages acting as resistance. Combined with broader market movements, it appeared likely Polygon prices would trend downward in the near term.
