By Polygon’s POL is one of the best performers among the top 100 cryptocurrencies by market cap. The coin takes a breather above $0.11 after adding 11% to its value in the last 24 hours.
The rally comes as Polygon recorded its largest monthly burn of more than 25 million POL tokens in January. This latest development also comes amid the launch of Ethereum’s trustless agents through ERC-8004 on Polygon.
Technical indicators suggest that Polygon could rally higher in the near term despite the broader pressure from the cryptocurrency market.
Polygon adopts ERC-8004
POL is the best performer among the top 100 cryptocurrencies and is now trading at $0.1140 per coin. On-chain data shows Polygon could rally higher in the near term.
The Polygon team announced the adoption of Ethereum’s trustless agent standard (ERC-8004), which allows agents on layer-2 networks to have portable identity and reputation.
Polygon is betting on the agent economy thanks to the growing ecosystem of AI agents.
Its bet is leading to renewed network effects, developer adoption, real-world use cases, and actual agent-to-agent economic value creation.
Ethereum’s trustless agents are live on Polygon.
ERC-8004 makes identity and reputation portable, unlocking agentic interactions across L2s orgs without the walled gardens.
The result: a scalable, permissionless agent economy
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Data obtained from Artemis shows that Polygon recorded bridged net flows of $13.6 million over the last 24 hours, second only to Arbitrum, which recorded $50.4 million in net flows.
In addition to that, Polygon’s stablecoin supply has increased by $29 million over the same period.
Polygon has intensified its burning mechanism in recent weeks.
According to Blockworks, 25.73 million tokens were removed from circulation in January. Usually, a reduction in circulation leads to increased demand.
Will POL rally towards $0.16?
The POL/USD 4-hour chart is bearish and efficient despite Polygin adding 12% to its value in the last 24 hours. POL bounced back from the $0.100 level on Sunday after a steady decline of 21% over the past three weeks.
Despite the slight recovery, the downward slope of the 50-, 100-, and 200-day Exponential Moving Averages (EMAs) reinforces a strong bearish trend.
For POL to embark on a sustainable recovery, its price should surpass the 50-day EMA at $0.1273.
A rally above this level could see the bulls push higher towards the 100-day and 200-day EMAs at $0.1422 and $0.1743, respectively.
The momentum indicators on the daily chart suggest cooling in selling pressure. The Relative Strength Index (RSI) at 57 is above the neutral zone, indicating a growing bullish momentum.
The Moving Average Convergence Divergence (MACD) line approaches the neutral line, suggesting the possibility of a bullish crossover.
On the flip side, if the bulls fail to push the price above the $0.124 resistance level, POL could face a reversal towards the $0.1000 psychological level once again in the near term.
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