Can Polygon's price rebound to January's high? Stablecoin activity and application revenue may become key catalysts

On February 25, it was reported that Polygon’s price has fallen sharply by over 50% from its January 2026 high, reaching a yearly low of $0.088 on February 11. The overall market correction and multiple support levels being broken are closely related. Currently, POL is consolidating between $0.100 and $0.115.

According to DeFiLlama data, the total supply of stablecoins on the Polygon network has surged from $2.4 billion in early February to $3.26 billion, while weekly revenue from DeFi applications on the network has increased by nearly 70%. The rise in activity and liquidity not only indicates improved network health but may also attract more institutional capital into the market.

Additionally, Polygon recently burned over 100 million POL tokens, permanently removing them from circulation to enhance token scarcity and support short-term bullish momentum. The daily chart shows that POL’s price may confirm a golden cross between the 50-day and 100-day moving averages, a technical signal that often indicates a potential upward trend.

Key resistance levels are at $0.122, an important pivot point according to Murrey Math lines. If bulls break through this level, they could target the January high of $0.184, representing an increase of about 64% from the current price. Conversely, if the $0.097 support level cannot hold, POL may fall back to the yearly low of $0.088.

Analysts note that Polygon’s rebound still depends on stablecoin activity, application revenue growth, and overall market sentiment. As on-chain data continues to improve, coupled with potential institutional inflows and token burn strategies, Polygon may have the opportunity to regain upward momentum in the short term.