Recently, Polygon [POL] underwent a significant upgrade that not only changed the token’s name but also introduced various new features. Despite this, the upgrade did not result in a price surge. Concurrently, there was notable whale movement in the market.
Post-Upgrade Whale Behavior
Previous reports from CryptoCrypto indicated that the transition from MATIC to POL was smoothly executed by Polygon developers. The Polygon team stated that community deliberation over a year led to the decision to upgrade POL as the native token for the network.
In the aftermath of the upgrade, major movements were observed among POL whales. Santiment recently highlighted a tweet revealing abnormal price trends following a sudden shift of whale exchange wallet supply to whale cold wallets.
As a response, CryptoCrypto decided to investigate data from IntoTheBlock to understand the impact on the distribution of MATIC’s supply. Our analysis indicated a 50% reduction in the number of addresses holding 1 billion to 10 billion POL tokens over the past month.
This data strongly suggested a significant decrease in the largest POL whale holders. Moreover, addresses holding fewer tokens also experienced a decline during the same period.
Price Surge on the Horizon for Polygon?
Amidst these events, POL’s price volatility witnessed a decline, reflected in marginal movements on both weekly and daily charts. Consequently, CryptoCrypto delved into the token’s on-chain data to anticipate future trends.
Our examination of Santiment’s data revealed a decrease in the blockchain’s social volume, despite the recent major upgrade of Polygon. Furthermore, POL’s MVRV ratio saw a decline, signaling a bearish trend.
Interestingly, despite the reduction in whale addresses, there was an uptick in buying pressure on the token. This was evidenced by a significant decrease in supply on exchanges and a surge in supply off exchanges.
Typically, an increase in buying pressure often leads to price appreciation.
CryptoCrypto then analyzed the daily chart to identify potential price targets for POL. This analysis was prompted by the neutral fear and greed index position observed for Polygon at the time of writing.
When this indicator reaches a neutral level, it suggests the market’s potential for movement in either direction in the near future. A prevailing bearish market sentiment could drive POL towards $0.36. Conversely, if bullish momentum takes over, reaching $0.41 is plausible, with a breakthrough potentially propelling the token to $0.57.