Over the past week, Polygon [POL] experienced a 13.74% increase in value; however, recent market sentiment shift has turned bearish for the asset.
Within the last 24 hours alone, POL’s price has dropped by 8.12%, suggesting further declines may lie ahead.
Acceleration in POL’s Downward Trend Due to Whale Sell-Offs
POL is currently facing significant pressure from large holders, with whale activities contributing to a sharp decline and intensifying bearish trends.
Two crucial metrics from IntoTheBlock—Large Holders Netflow to Exchange Ratio and Large Transaction Volume—have highlighted this downward movement.
The Large Holders Netflow to Exchange Ratio indicates the movement of assets from major holders, or “whales,” to exchanges. An increase in this ratio during a price drop typically signifies heightened selling pressure.
For POL, this ratio surged by 737.00% in the last 24 hours and by 2,474.58% over the past seven days, aligning with a broader bearish sentiment as whales reduce their holdings.
Moreover, the surge in large transaction volume, with 78 significant transactions recorded during this period, further confirms the bearish sentiment.
Potential Break in the Decline or Upsurge?
Despite sustained whale sell-offs, the daily chart suggests that POL could potentially find a temporary support level at a critical point, paving the way for a possible rally.
The support level at $0.3634 might generate enough buying interest to change the momentum, potentially leading to a price rebound towards $0.5792.
However, if selling pressure from major holders persists, POL faces the risk of further declines, potentially dropping to $0.2855.
Increasing Retail Selling Pressure
IntoTheBlock reports a sharp decrease in POL’s Open Interest over the past 24 hours, falling to $142.53K after reaching a peak of $198.56K on November 9th.
As a result, bears now dominate the market’s derivative contracts amid the ongoing uncertainty.
Data from Coinglass also mirrors this bearish sentiment, with only $24.98K in closed short contracts compared to a significant surge in closed long contracts totaling $685.75K.
This imbalance underscores the prevailing bearish momentum, with a higher number of liquidated long trades.
Given this shift, the probability of a further decline in POL outweighs any potential rally expectations.