Polygon (POL) Extends Gains as Market Interest Rises

Polygon (POL) is trading higher on Wednesday, recording 5% gains and building on the previous day’s 4% rise. The Ethereum (ETH) scaling ecosystem has attracted attention after acquiring Coinme and Sequence for over $250 million, signaling its shift toward becoming a US-regulated blockchain payments company. On-chain data indicates that large-wallet investors, often referred to as whales, are increasing their POL holdings, highlighting renewed demand.

Strategic Acquisitions Push Polygon Toward US Regulation

On Tuesday, Polygon announced it had acquired Coinme, a Bitcoin ATM provider, and Sequence, a crypto wallet infrastructure firm, for more than $250 million. The move advances Polygon’s Open Money Stack roadmap, a cross-border stablecoin payment platform, and provides access to regulated on-chain money movement in 48 states, licensed wallet infrastructure, and 50,000 retail locations in the US. These acquisitions also offer on- and off-ramps to facilitate fiat-to-crypto conversion.

Whale Activity Signals Growing Investor Confidence

Data from Santiment shows that whales holding over 1 billion POL have increased their combined holdings to 2.38 billion tokens from 2.35 billion at the start of January. This uptick underscores sustained interest from large investors as Polygon expands its ecosystem.

Technical Outlook Points to Potential Breakout

Polygon remains steady above $0.1600, maintaining a 35% gain from last week. The sidechain ecosystem has recovered over 60% in January and is approaching a resistance trendline connecting the December 2024 and September 2025 highs on the weekly logarithmic chart. A decisive close above $0.1639 and the declining trendline near $0.1823 could extend the rally toward $0.2855, which capped gains in August. The weekly MACD crossing above its signal line and an RSI recovering to 45 suggest bearish momentum has eased.

Key Support Levels Could Determine Next Move

A reversal below $0.1639 may push POL toward the $0.1000 psychological support level. Meanwhile, the token approaches the 200-day Exponential Moving Average (EMA) at $0.1854, close to resistance at $0.1834. Surpassing this threshold could open the path to the October 13 high at $0.2123. The daily RSI near 67 indicates strong buying pressure, though declining MACD histogram bars hint at overhead resistance that could moderate momentum.

Short-Term Risks and Downside Levels

On the downside, a drop below $0.1500 could test the 50-day EMA at $0.1340, suggesting caution for traders watching for trend reversals.