Polygon forms double-bottom as payments onchain surge via Tazapay, Revolut, Paxos, Moonpay
Polygon (POL) price has plunged from a 2026 high of $0.1853 to about $0.095 after a broader market downturn and public criticism of Layer‑2s. Despite the pullback, on‑chain fundamentals show rising payment activity: Polygon now ranks second in monthly USDC addresses after Solana, with peer‑to‑peer stablecoin transfer volume topping $39 billion. Major payment processors on Polygon in January included Tazapay (~$687M), Revolut (~$50M), and contributions from Stripe, Paxos, Moonpay and Avenia Pay. Network fees and the burn rate have risen materially in recent months. Technical analysis shows POL has formed a double‑bottom pattern with a neckline at $0.1853 and support near $0.084–$0.085. A confirmed bullish breakout would target roughly $0.15 (≈57% upside from current levels); a break below $0.0845 would invalidate that view. Key takeaways for traders: strong on‑chain payment volume supports longer‑term demand for POL, but short‑term price action remains linked to broader crypto market moves and risk from negative sentiment toward Layer‑2s.
Bullish
Bullish — The article outlines a clear divergence between price action and on‑chain fundamentals. Significant increases in payment volume (USDC P2P transfers > $39B) and large processor flows (Tazapay ~$687M, Revolut ~$50M) indicate persistent real demand and utility for Polygon’s network. Rising network fees and an elevated burn rate are additional structural positives that support token scarcity and fee-driven demand. Technicals reinforce a potential reversal: a double‑bottom with a neckline at $0.1853 suggests a sizable upside target (~$0.15) if momentum returns. However, the bullish case is conditional: broader crypto market weakness and negative narratives around Layer‑2s (e.g., Vitalik Buterin’s critique) can prolong consolidation or trigger further downside; a break below $0.0845 would invalidate the reversal. Short term: expect volatility and range trading between support ($0.084–0.085) and resistance near prior highs. Medium‑to‑long term: if payment volumes and burn rates continue rising, structural demand could support a sustained recovery. Historical parallels: tokens with strong on‑chain utility (e.g., SOL during native app inflows) have re-rated after extended dips; similarly, Polygon could see a re‑rating if on‑chain usage growth persists and market risk appetite returns.