Polygon Sees Rising Active Addresses and Buyer Accumulation, but Profit-Taking and Netflows Could Curb Rally

• POL rallied 12.72% to $0.2736 on higher on-chain activity

• Active Addresses rose from 447k to 665k while Daily Transactions returned to ~4 million, per Artemis and Sealunch.

• Buy Volume exceeded Sell Volume (86.7M vs 70.6M) but Santiment shows high profit-taking (profit/loss ratio 3.24).

Meta description: Polygon POL price jumps as active addresses and transactions rise; read on for on-chain signals, profit-taking risk, and short-term levels. Stay informed.

What caused the recent Polygon POL price rally?

Polygon POL price rose after stronger network demand: Active Addresses and Daily Transactions increased, while buyer accumulation outpaced sells. Market cap and trading volume expanded, but on-chain profit-taking and positive Spot Netflows introduce near-term caution.

How did on-chain activity change for Polygon?

Active Addresses climbed from 447k to 665k (Artemis), indicating renewed user engagement. Daily Transactions recovered to ~4 million, a 7.9% rise, reflecting more on-chain usage. Sealunch reported 780k transacting addresses for Polygon on August 18, ahead of Arbitrum (492k).

Source: Artemis

Why did USDT0 and stablecoin flows matter for Polygon?

Polygon’s recent PoS USDT upgrade to the USDT0 standard boosted USDT0 transactions, per X user Dhee. Over four months, Polygon processed rising XSGD volumes ($66M, $88M, $74M, $94M), suggesting growing stablecoin utility and positioning Polygon as a regional stablecoin hub (Petertherock).

Source: Dhee on X

Source: Petertherock

How did buyer accumulation and exchange flows behave?

Buyers stepped in near $0.23, producing two days of accumulation. Coinalyze recorded Buy Volume at $86.7M vs Sell Volume $70.6M (Buy–Sell Delta +$16.1M). However, CoinGlass shows positive Spot Netflows for two consecutive days, with netflow at ~$929k at press time, down from $2.02M the prior day — implying higher inflows into exchanges and potential selling pressure.

Source: Coinalyze

When is profit-taking likely to affect price?

Santiment reports the Ratio of Daily On-chain Transaction Volume in Profit to Loss at 3.24, meaning roughly 3.2 profitable transactions per losing one. High profit-taking often precedes short-term pullbacks as holders realize gains. Combined with positive Spot Netflows, this raises the risk of corrective moves.

Source: Santiment

What do momentum indicators show?

Technical momentum appears constructive: RSI is ~61 and DMI shows Positive DI (24) above Negative DI (20), implying buyer dominance. If buying persists, $0.28 is the next near-term resistance; extended strength could test $0.30. Failure below $0.247 support risks a pullback toward $0.23.

Source: TradingView

Frequently Asked Questions

What is driving Polygon’s recent price strength?

Renewed on-chain demand — higher Active Addresses and Daily Transactions — plus buyer accumulation and growing stablecoin flows (USDT0, XSGD) are primary drivers, supported by elevated trading volume and positive technical momentum.

Is profit-taking likely to cause a pullback?

Yes. Santiment’s profit/loss ratio at 3.24 and rising exchange spot inflows indicate significant holders are taking gains, increasing the probability of short-term corrections.

Key Takeaways

• Demand rebound: Active Addresses and Daily Transactions rose sharply, lifting network usage.
• Buyer accumulation: Buy Volume outpaced Sell Volume for two days, signaling accumulation near $0.23.
• Risk of correction: High profit-taking (Santiment) and positive Spot Netflows (CoinGlass) suggest short-term caution.

Conclusion

Polygon POL’s uptick reflects stronger network demand and buyer accumulation, with technical momentum supporting higher levels near $0.28–$0.30. At the same time, elevated profit-taking and positive exchange flows warrant vigilance. Monitor Active Addresses, Spot Netflows, and RSI for next directional cues. COINOTAG will continue tracking these metrics and publish updates.