Polygon holds $0.10 amid crypto caution: POL recovery ahead?

• Polygon price rose about 5% in the past 24 hours.
• The token continues to hold above $0.10.
• A surge in transactions, stablecoin adoption and POL burning is helping price gains.

Polygon (POL), formerly MATIC, has stabilized above the $0.10 support level despite ongoing market volatility.

As macroeconomic and geopolitical headwinds pressure Bitcoin and Ethereum prices lower, POL is showing great resilience.

The token has gained in the past 24 hours and trends among top performers on the day, outpacing several of its layer 2 peers. Can bulls reclaim key levels and push higher despite overall market weakness?

Why is Polygon price up today?

POL’s uptick today includes a notable rise to intraday highs above $0.11. The token revisited prices around $0.10 but showed resilience amid its bounce from under the psychological level.

Bitcoin’s dip to $65k looks to have allowed for some capital rotation into small cap tokens, including POL.

While this looks to be a plausible reason for the bounce, Polygon’s upward move largely stems from recent momentum, helped by robust stablecoin volume and deflationary dynamics.

The L2 has seen a huge leap in terms of USDC transactions on the network, leading to Ethereum scaling solutions.

DeFiLlama data shows the stablecoin market cap on Polygon stood at around $3.26 billion at the time of writing.

Analysts have noted that more than 100 million POL tokens have been burned on the Polygon network.

The token burn means a cut in circulating supply and potential upward price pressure.

In the past 30 days, about 32.6 million POL have been burned, slashing net issuance.

The more activity there is, the more fees generated and the more POL burned and permanently removed from circulation. The token’s price could strengthen long-term amid this move.

POL price forecast

Polygon price appears to be riding the above bullish catalysts.

Trading volume rose more than 30% in the past 24 hours on Monday, hitting over $84 million.

In terms of short-term price forecast, POL currently eyes resistance at $0.12. This aligns with the horizontal hurdle of an ascending triangle pattern, and points to a potential uptick to highs of $0.30.

If bulls strengthen above $0.14 and decisively breach $0.20, continuation amid broader market gains will help galvanize this trajectory.

A breakdown of a similar outlook however, saw Polygon’s token plummet to recent lows. In this case, rejection at $0.12 or $0.14 could fuel further declines, with bears likely to eye $0.09 as the initial target.

The post Polygon holds $0.10 amid crypto caution: POL recovery ahead? appeared first on CoinJournal.