POL Shows Strong Momentum as Support Holds, Network Burns Surge Over 3M

CryptoFrontNews
POL0,78%
  • POL price breaks descending trendline, signaling bullish reversal with strong momentum.

  • Former resistance now acts as key support, maintaining upward trend potential.

  • Network burns surge above 3M, creating supply reduction alongside growing demand.

POL price analysis shows a strong bullish reversal after weeks of decline. Breakout momentum, rising network burns, and stable support indicate early accumulation and potential continuation.

POL Price Analysis Shows Bullish Reversal

POL price analysis shows a shift from a prolonged downtrend to a bullish phase. For weeks, the token followed a descending trendline, forming lower highs and lows. In early January, it broke out decisively, signaling a market shift.

ZAYK Charts reported that POL/USDT rose from $0.105 to $0.144, about 38%, with strong green candles and shallow pullbacks, indicating real demand.

$POL Running in +35% Pump So Far,Since Breakout✅#POL #POLUSDT https://t.co/N6WdReJiNK pic.twitter.com/0ErmHraJqL

— ZAYK Charts (@ZAYKCharts) January 9, 2026

Former resistance at $0.115–0.120 now acts as key support, and staying above it is crucial for continued upward momentum.

Short-term consolidation may occur, which is considered healthy for resetting momentum indicators before further upward moves.

Breakout and Momentum in Focus

On the 1-hour timeframe, POL/USDT reflects textbook bullish continuation. Price has moved from steady gains to momentum-driven expansion, forming higher highs and higher lows.

The breakout above the $0.130–0.135 range removed prior caps on price, accelerating upside movement. Expanding volume and rising volatility accompany the breakout.

Candles consistently close near highs, suggesting limited selling pressure even during rapid gains. ZAYK Charts noted that POL buyers are absorbing profit-taking efficiently, supporting ongoing upward pressure.

Structural analysis emphasizes that previous resistance levels have turned into key support zones. Brief consolidations or shallow pullbacks into these levels would be considered technically healthy, potentially fueling the next leg higher.

Network Burn Trends Reinforce Market Structure

POL price analysis also considers on-chain fundamentals. Network burn data shows over 3 million POL burned on January 5, 2026, a multi-month high.

For weeks prior, burn levels remained muted, indicating lower transaction activity. Since late December, burns have trended higher, signaling a shift in network economics.

Accelerated removal of tokens from circulation may tighten effective supply, aligning with bullish price behavior. Rising burns coincide with strong buyer activity, reinforcing trend sustainability.

Market data reveals that supply reduction, driven by burn activity, strengthens overall structure. If high burn rates persist alongside stable demand, POL’s price movement may benefit from tighter circulation dynamics and lower sell pressure.

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