After reaching a bottom of $0.35, Polygon [POL] has been on a consistent upward trend, seeing a recent peak.
Currently, Polygon is trading at $0.5406, showing a 17.59% increase in the last 24 hours. Moreover, the altcoin has seen impressive gains of 34.38% on a weekly basis and 51.88% on a monthly basis.
This positive trend has provided an opportunity for long-term holders to cash in some profits, with one notable holder being Alameda Research.
Alameda Research Moves 2 Million POL Tokens
As per Arkham intelligence data, Alameda Research has sent 2 million tokens valued at $915K to the Binance exchange.
In the past week, Alameda has been actively selling off their holdings, transferring a total of 4.5 million tokens valued at $1.98 million. This action has raised concerns about a potential negative impact on prices and a subsequent pullback.
Typically, if large holders sell and the market cannot absorb the selling pressure, prices tend to drop.
Price Impact Analysis
Despite Alameda’s transfers, POL continues to have strong positive sentiment and remains in a bullish phase.
Although the market expected some selling pressure due to these activities, POL seemed to be managing the situation well.
This is evident in Polygon’s Futures Open Interest, which surged to reach a new all-time high of $106.9 million in the last 24 hours.
The increase in Open Interest indicates growing demand for the altcoin, with investors opening new positions.
Furthermore, Polygon’s Stock-to-Flow ratio has risen from oversupply levels to 1.24.
An increase in the SFR signifies that the altcoin has become scarcer, and scarcity usually leads to higher value. When the supply diminishes while demand is on the rise, prices tend to appreciate.
Over the past week, Polygon’s MVRV Long/Short Difference has climbed from -2.37 to -0.56, indicating that long-term holders are making profits and are highly optimistic about further price gains.
In summary, despite Alameda Research’s substantial transfers, POL continues to exhibit a bullish sentiment. However, the impact of these transfers on price charts has not materialized negatively yet.
With a strong upward momentum, POL could potentially reach $0.57 in the near term. In the event that these transfers do influence the market, POL is expected to find support around $0.47.