Polygon price slowly forms a bullish pattern as stablecoin growth surges

Polygon price continued its downward trend on Monday, June 23, dropping to its lowest level since April 9.

Polygon (POL) plunged to a low of $0.1732, mirroring the broader sell-off in altcoins. The token is now down more than 77% from its December 2023 high.

The sell-off in Polygon comes amid a broader crypto market downturn and the network’s declining market share to rising competitors like Base and Arbitrum. For instance, decentralized exchanges on Polygon processed $3.82 billion in transactions over the last 30 days.

By comparison, Coinbase’s Base chain handled over $29 billion during the same period, while Arbitrum recorded $18.9 billion. Newer layer-1 blockchains such as Hyperliquid and Sui have also overtaken Polygon in terms of DEX volume.

On a more positive note, Polygon has shown strong growth in the booming stablecoin sector. Its stablecoin supply has jumped 10% over the last 30 days to more than $2.3 billion.

Supporting this, the number of stablecoin transactions on Polygon jumped 44% to 81.1 million during the same period. The adjusted transaction volume surged 35% to $52 billion, positioning Polygon as one of the leading chains in stablecoin activity.

Most of this activity has come via Binance, followed by Polymarket, the popular prediction market platform.

Polygon price technical analysis

The daily chart shows that POL bottomed at $0.1500 in April and rebounded to a high of $0.2754 on May 11. Since then, the price has retreated and broken below the 50-day moving average.

Polygon is now approaching a critical support level at $0.1500, suggesting it may be forming a double-bottom pattern, a common bullish reversal signal.

If the price holds above this level and begins to bounce, the next upside target would be the neckline around $0.2757. However, a decisive drop below $0.1500 would invalidate the bullish setup and potentially trigger further downside.