Polygon's native token POL is trading above $0.1200 on Tuesday, extending its winning streak to five consecutive sessions after a 45% surge last week. The digital asset has reclaimed the psychological $0.1000 mark and broken above a long-term descending resistance line, bolstering its near-term technical outlook.
Renewed on-chain activity is underpinning the recovery. According to Blockworks data, Polygon recorded approximately 41.44 million transactions last week, up from 38.45 million the prior week—a 7.8% increase. While this remains below the 71.27 million seen in mid-March, it is well above the late-2025 weekly average of around 30 million, indicating that users and applications are becoming more active on the network.
The network's Real Economic Value (REV), which combines base transaction fees and priority fee tips, rose to about 6.06 million POL last week from 5.65 million POL the previous period. Priority fees accounted for roughly 2.44 million POL of the latest total. REV has stayed above 5 million POL since early May, reflecting consistent demand for blockspace. The latest increase represents a 7.3% week-over-week growth, signaling that users are willing to pay more to access the network, although the dollar value depends on POL's market price.
Technical breakout and momentum
On the 4-hour chart, POL's technical structure has improved significantly over the past ten days. The token is now trading above its 50-day exponential moving average (EMA) at $0.0833 and its 200-day EMA at $0.0967. It has also broken above a long-term descending resistance line near $0.0840, and the subsequent recovery above $0.1000 suggests buyers have regained control of the trend.
The Moving Average Convergence Divergence (MACD) indicator continues to rise in positive territory, with its histogram expanding above the zero line, indicating strong bullish momentum. However, the 4-hour Relative Strength Index (RSI) stands near 75, placing POL in overbought territory. Such an elevated reading reflects intense buying pressure but also warns that the price has risen too quickly relative to its recent trading history. While an overbought RSI does not guarantee an immediate decline, it increases the risk of profit-taking, sideways consolidation, or a pullback before the rally resumes.
Key levels to watch
If the rally continues, POL's first major target is the October 11 low at $0.1795. A move from $0.1220 to that level would represent a gain of approximately 50%. A decisive break above $0.1795 could shift attention toward the psychological resistance at $0.2000. Reaching those levels would require sustained buying pressure and continued support from broader cryptocurrency market conditions, similar to the momentum seen in Bitcoin's recent rally.
On the downside, the psychological $0.1000 level provides first major support. A pullback below that area would place the 200-day EMA near $0.0967 in focus. Further selling could push POL toward the reclaimed trendline around $0.0840 and the 50-day EMA at $0.0833. These two levels form a broader demand zone that could attract buyers during a deeper correction.
For now, Polygon's outlook remains bullish while POL holds above $0.0967–$0.1000. However, its overextended momentum leaves the token exposed to short-term volatility. Investors should monitor whether the overbought condition leads to a healthy consolidation or a more pronounced pullback before the next leg higher. The broader crypto market's direction, as seen in Ethereum's recent surge, will also play a role in POL's trajectory.
As always, traders should be aware of the risks associated with volatile assets. The recent rally in POL is a reminder of how quickly sentiment can shift in the crypto space, and technical indicators suggest that a pause may be imminent.
This article is for informational purposes only and does not constitute financial advice.
