Headline: Polygon posts strong on-chain activity and 25.9M token burn — but price looks vulnerable in the short term Polygon (POL) notched a string of positive on-chain developments this week — including a milestone in stablecoin transfers, heavy trading activity and a surge in stablecoin addresses on the network — while the protocol completed a 25.9 million POL burn and signaled more burns are planned to tighten circulating supply. Those fundamentals have strengthened the token’s narrative, but technicals suggest price downside may still be ahead. What happened on-chain - AMBCrypto’s reporting highlighted elevated trading volumes and a notable increase in stablecoin addresses interacting on Polygon, underscoring heightened usage. - A scheduled burn of 25.9 million POL further reduced supply, and additional burns expected in coming months aim to further tighten circulation, a factor bullish for long-term tokenomics. Technical picture (POL/USDT) - Daily timeframe: The longer-term bias remains bearish despite a recent bounce that pushed POL above the $0.10 mark. Price briefly tested local resistance at $0.119 before reversing on lower timeframes. The Accumulation/Distribution (A/D) indicator printed new local highs, indicating buying pressure still exists. If buyers sustain momentum and flip $0.119 into support, POL could target the 78.6% Fibonacci retracement near $0.1646, with $0.135 likely the key intermediate hurdle. - Hourly timeframe: Short-term structure looks weak. On Saturday, Feb. 14, an intense hourly surge with high volume suggested a breakout attempt, but the subsequent sell-off also carried heavy volume — signaling buyer exhaustion after capturing liquidity around $0.11–$0.12. Moving averages on the H1 chart were approaching a bearish crossover and acting as resistance, reinforcing the near-term downside case. - Macro risk: Bitcoin’s rejection from a local supply zone near $70.7k adds downward bias across the market, which increases the probability of POL drifting lower over the next few days. Bottom line Strong on-chain metrics and scheduled burns improve Polygon’s fundamental outlook, but the technical setup currently favors a short-term pullback unless buyers can convincingly reclaim and hold $0.119. Traders should watch volume, the $0.119–$0.135 zone, and broader BTC direction for clues. Sources: POL/USDT on TradingView; AMBCrypto reporting Disclaimers: - The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion. - AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions. © 2026 AMBCrypto Read more AI-generated news on: undefined/news

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