Polygon's Meteoric Rise Falters at Key Resistance Level

Polygon's POL token has surged by more than 31% in the past 24 hours, driven by growing network activity and a stronger risk-on sentiment in the crypto market. However, bulls appear to be losing their grip on this new strength.

According to CryptoQuant, Polygon's Transaction Count rose from 407 to 2,606 over the week, a staggering 6x growth. Meanwhile, Active Addresses doubled, and the chain's DEX and Perps volume have continued to rise sharply.

Fundamentally, Polygon has integrated the settlement of Frax's frxUSD-based FX pools, making multi-bank currency conversion nearly instant. However, USDC remains the dominant stablecoin on the chain with a 54% share.

The altcoin is currently trading above $0.085, the neckline of an inverted heads-and-shoulders pattern, but faces resistance around $0.12. The MACD has turned green, indicating bulls are still in control, but the instant rejection at $0.12 hints at a potential pause in intense buying activity.