From its peak at $0.76 in December 2024, Polygon [POL] has been following a downward trajectory, forming lower peaks and troughs.
During this period, POL has dropped to a low of $0.38, marking a decline of 10.42% over the last month.
This persistent downtrend has captured the attention of analysts, with prominent crypto expert Ali Martinez suggesting a probable adjustment.
In Martinez’s assessment, there’s a possibility that POL might undergo a significant correction of 44%, leading it down to $0.23. This move would push Polygon to its lowest point in three months.
As per his analysis, a breach of the descending pattern would confirm a continuation of the bearish trend.
Insights from Polygon’s Charts
Even though Polygon is currently encountering substantial downward pressure, the digital asset is showing signs of a short-term recovery.
At the time of writing, Polygon was trading at $0.4053, displaying a recovery of 1.22% on the daily charts.
The recent bullish crossover in POL’s charts indicates a strengthening uptrend, suggesting that selling pressure is easing off while buying activity is picking up.
This view is further supported by an upward turn in the RSI, moving from 33 to 38, indicating heightened buying interest.
The surge in buying activity seems to be primarily driven by Polygon whales, indicated by a remarkable spike of 3624.46% in large holders’ netflow, rising from 1.84 million to 68.53 million currently.
This significant increase implies that more substantial capital from whales is flowing into the asset, reflecting a bullish sentiment as they anticipate a price rebound.
Moreover, there’s been a consistent decrease in Polygon’s availability, with the stock-to-flow ratio climbing to 1.43 million, indicating that most investors acquiring the asset are hoarding their POL tokens in secure offline storage.
As a result, it’s evident that whales are actively accumulating Polygon.
Lastly, with Polygon’s MVRV ratio still lingering in negative territory, it presents an attractive buying opportunity as whales view the altcoin as undervalued following this decline.
To sum it up, while Polygon was under significant downward pressure, indications point towards a probable short-term recovery. If this materializes, POL could push back up to $0.44, and a further move to $0.47 might be on the horizon if this level proves to be resilient.