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Home»Layer 2»Here’s why Polygon price is at risk of a 25% plunge
Layer 2

Here’s why Polygon price is at risk of a 25% plunge

18 June 2025No Comments2 Mins Read
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Polygoon Prize continued his free fall and reached the lowest level since April 21, when the wider crypto sale was given momentum.

Polygon (Pol) fell to $ 0.1915, by 32% decrease compared to the highest point in May and 74% below the peak of 2024. The crash has withdrawn its market haircut from $ 5.68 billion on its peak to $ 2 billion today.

Polygon has left the wider market because of the rising competition in the low-2 sector. Facts to show It has locked a total value of $ 1.17 billion and $ 2.3 billion in Stablecoin offer.

Basic, the low-2 supported by Coinbase in 2023, has, on the other hand, has $ 5.14 billion in TVL and $ 4.16 billion in stablecoins. Similarly, Arbitrum (ARB) has more than $ 3 billion in assets and $ 3.5 billion in stablecoins.

The most important thing is that Unichain, launched by Uniswap (Uni) in March, has already won $ 1.12 billion in assets and $ 316 million in stablecoins.

The Polygon token also fell after the closure of Polygon ZKEVM, which was originally taken over as Hermes for $ 250 million. The CEO mentioned delayed technical implementation, lack of product market fit and overly ambitious goals as important reasons for the decision.

On the positive side, Nansen -data indicates Polygon’s network activity is growing. The number of transactions has risen by 33% to 85.6 million in the last 30 days, while active addresses rose 23% to 6.49 million.

The transactions and addresses are higher than a popular network such as Ethereum (ETH). The active addresses of Ethereum rose by 5.5%, while the transactions rose to more than 34 million.

See also  Linea woos Ethereum users with 'free' layer-2 bridging

Technical analysis of Polygoon Prize


POL -Price diagram | Source: crypto.news

On the daily graph, the Pol -Token peaked in December at $ 0.7672. Since then it has fallen at $ 0.2950 below the 23.6% Fibonacci racement level.

Pol is also under its 50-day advancing average cases. Moreover, both the MACD and the relative strength index continue to fall.

That is why token is likely to continue to fall, because sellers focus on the year to date of $ 0.1487-26% below the current level. A movement above the Retracement level of 50% at $ 0.2195 would make this Bearish for views invalid.

Heres plunge Polygon Price Risk
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