Evaluating the rally of Polygon as record token burns challenge POL’s profit-taking risks

POL rallied by 9.29% in just 24 hours and 48.5% over the past week, starting on January 1, 2026, amid gains in Bitcoin and the crypto market. On January 7, the Polygon Foundation reported record demand and burned over 3 million POL tokens, stimulating further interest.

Despite POL’s rise, onchain data shows that 90-day holders are back in profit, possibly leading to profit-taking in the near future. The resistance levels at $0.18 and $0.20 are crucial; breaking the latter could indicate a bullish trend, attracting long-term investors.

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