Polygon's descending wedge is about to break out, chain activity accelerates rapidly

Polygon (POL) is currently trading at $0.15, significantly down from last November’s high of $0.766. Although the price has declined substantially, technical indicators are signaling a strong reversal. Recent surges in on-chain activity and buy signals from data are also increasing market participant interest.

Bottoming Out of Polygon Seen Through Chain Activity

According to data analysis from Nansen, Polygon has been the second-fastest growing blockchain over the past 30 days, outpacing other major chains. The number of transactions within the network has surged by 90%, reaching 172 million. This figure far exceeds Arbitrum’s 79 million and Ethereum’s 47.2 million.

Active addresses have also increased by 30%, reaching 14.2 million, surpassing nearly all competing chains including Arbitrum, Aptos, and Ethereum. This growth in user numbers is attracting attention from high-risk, high-reward investors like Degens, serving as an important indicator of platform vitality.

Growing Real-World Demand Supports Network Value

Polygon’s growth is driven by expanding real-world usage. Integrations with major companies such as Stripe, Shift4, Revolution, and Polymarket have progressed, with reported payment volumes exceeding $70 million on Stripe. This number is expected to continue increasing, indicating expansion beyond mere speculative demand and towards genuine use cases.

Data from DeFi Llama shows that DEX protocols within the Polygon network processed over $210 million in the past 24 hours and $5.72 billion over the past 30 days. This demonstrates a steady increase in network liquidity and practicality.

Technical Analysis: Bullish Wedge Preparing for Reversal

On the daily chart, the POL token has fallen from $0.766 in November last year to $0.15, but multiple positive signals are visible from technical patterns.

Notably, a descending wedge formation is forming. This pattern is known as a bullish reversal signal, with the two lines of the wedge converging. Typically, such patterns precede bullish breakouts, suggesting a potential price increase in the near future.

Additionally, bullish divergence is also forming, with key oscillators such as the Percentage Price Oscillator and Relative Strength Index showing upward momentum. Divergence in these indicators is a classic sign that a bearish trend may be about to reverse.

Meanwhile, the fact that the 50-day and 200-day moving averages remain below current prices still indicates bearish dominance. However, the price is approaching the support zone indicated by the head-and-shoulders pattern, making a rebound from this level quite possible.

Future Price Movement Outlook

If these technical factors converge, POL could attempt a rebound toward the resistance at $0.1520. A break above this level would confirm a bullish breakout, paving the way for further upward movement.

The current scenario, with expanding on-chain activity, advancing practical partnerships, and improving technical signals, suggests Polygon is moving from a bottoming phase toward a rebound. Monitoring future price action will be valuable.