The Polygon [POL] token recently underwent a significant update that not only altered its name but also introduced several new enhancements. Despite this, the upgrade did not immediately translate into a surge in price. Concurrently, there was a noticeable shift in whale activity.
How are large investors behaving post-POL upgrade?
An earlier report by CryptoCrypto highlighted that the transition from MATIC to POL proceeded smoothly as intended by the Polygon developers. The Polygon team shared that the process of upgrading POL as the platform’s native token took a year of community deliberations.
In the aftermath of the upgrade, significant moves were made by POL whales. A recent tweet by Santiment disclosed that POL, among others, witnessed irregular price movements following a sudden transfer of holdings from whale exchange wallets to whale cold wallets.
Consequently, CryptoCrypto sought to explore IntoTheBlock’s data to assess the impact on MATIC’s supply distribution. Our analysis revealed that the count of addresses holding between 1 billion to 10 billion POL tokens halved over the past 30 days.
This data indicated a notable reduction in the largest POL whale addresses. Moreover, even addresses with lesser token quantities witnessed a decline during the same period.
Can we anticipate a surge in Polygon’s value soon?
During these events, the price volatility of POL decreased, reflecting marginal movements on both weekly and daily charts. Accordingly, CryptoCrypto delved into the token’s on-chain statistics to gauge its future performance.
An examination of Santiment’s data indicated a fall in the blockchain’s social volume, despite the recent upgrade of Polygon.
Additionally, POL’s MVRV ratio experienced a decline, signaling a bearish trend. Nonetheless, amidst the drop in whale addresses, there was a noticeable uptick in buying pressure on the token, evident from the decrease in exchange supply and the rise in off-exchange supply.
Typically, increased buying pressure often leads to price escalation.
CryptoCrypto proceeded to analyze the token’s daily chart to identify potential price targets for POL. This initiative was taken as, currently, Polygon’s fear and greed index remained neutral.
When this metric reaches such a level, it suggests potential market movements in the upcoming days. A scenario dominated by bears could drive POL’s value down to around $0.36 soon.
Conversely, if bullish sentiment gains momentum, it wouldn’t be surprising to witness Polygon reaching $0.41. A breakthrough beyond that threshold could propel the token towards $0.57.