Polygon has been in the spotlight lately due to significant selling activity by whales in the market. In just 48 hours, these large holders have offloaded a massive 80 million POL tokens, translating to $41.2 million in value. This dramatic action has inevitably impacted the price and sentiment surrounding Polygon.
In the last day, POL has experienced a 6.11% decline, dropping to around $0.5176. This downturn comes on the heels of POL reaching a recent peak of $0.7675 just two weeks ago. Since that high, the altcoin has struggled and recently hit a local low of $0.48.
The selling flood initiated by whales has sent a clear message to other investors. Observers like Ali Martinez have noted how this trend often results in increased selling pressure, which can drag prices even lower. The Relative Strength Index (RSI) has also reflected this concerning trend, plummeting from 71 to 40, suggesting that the market is approaching oversold territory. Such a dip indicates that many holders, including those whales, are likely retrieving their investments while they can.
With the decline in whale confidence, smaller investors are becoming increasingly anxious. According to data from Coinglass, about 55% of market positions are short, highlighting a widespread expectation of further price drops. This shift in sentiment suggests that retail traders are following the lead of the whales, signaling increasing bearishness in the overall outlook for POL.
The technical charts paint a stark picture of this sentiment. Polygon is not just seeing a decline on daily charts but has also suffered a weekly drop of 21.31%. The Directional Movement Index corroborates this downward trajectory with an Average Directional Index (ADX) reading above +DI at 28. Notably, a negative Price DAA divergence supports the case for an ongoing downtrend, potentially leading the altcoin to more losses.
Despite this, it’s crucial to recognize potential support levels for POL. Should it continue to slide, there’s expected support around $0.48, while a reversal could see it reclaim the $0.53 mark. For those invested in Polygon or considering entering, it’s a classic moment of reflection and caution.
As POL weathers this storm of large-scale sales, trading dynamics can shift rapidly. Keeping a close eye on whale activity and overall market sentiment can provide essential insight into upcoming price movements. If you’re curious about how your investments are performing, check out the POL Profit Calculator for a clearer financial picture.
