TL;DR
- Polygon (POL) has faced significant market turbulence as Whales offloaded 80 million POL tokens worth $41.2 million, leading to a notable price decline.
- The token’s price dropped by 6.11% over the past 24 hours, trading at $0.5176, with a 21.31% drop on weekly charts, indicating a sustained downward trend.
- Whale activity has influenced market sentiment, with a higher number of short positions and a dip in the Relative Strength Index (RSI) to 40, suggesting a bearish outlook and potential for further declines.
Polygon (POL) has recently experienced significant market turbulence following a massive sell-off by whales. Over the past 48 hours, Polygon whales have offloaded 80 million POL tokens, valued at $41.2 million. This substantial dump has led to a notable decline in POL’s price, raising concerns among investors and market analysts.
Whales have sold over 80 million #Polygon $POL in the last 48 hours! pic.twitter.com/Ce4ehlXctT
— Ali (@ali_charts) December 19, 2024
Impact on POL’s Price
The sell-off has had an immediate impact on POL’s market performance. The token’s price has dropped by more than 6% over the past 24 hours, trading at $0.5188 at the time of writing.
This decline follows a recent high of $0.7675 just two weeks ago, highlighting the volatility and sensitivity of POL to large-scale transactions. The altcoin has also seen a 21.31% drop on weekly charts, indicating a sustained downward trend.
Whale Activity and Market Sentiment
The recent whale activity has significantly influenced market sentiment. According to analyst Ali Martinez, the whales’ decision to sell such a large volume of POL tokens suggests a lack of confidence in the market’s direction. This bearish sentiment has been echoed by retail traders, with a higher number of short positions being taken. Data from Coinglass indicates that 55% of total positions are now short, reflecting expectations of further price declines.
The Relative Strength Index (RSI) for POL has also dropped from 71 to 40, nearing oversold territory. This dip in RSI further confirms the bearish outlook, as it implies that most holders are currently selling their tokens to avoid further losses.
Strengthening Downtrend and Potential for Reversal in POL’s Market Dynamics
The continued selling pressure from whales and the resulting decline in POL’s price has raised questions about the token’s future prospects. The Directional Movement Index (DMI) shows that the downtrend is strengthening, with the Average Directional Index (ADX) sitting above the Positive Directional Indicator (+DI) at 28.
Additionally, a negative Price DAA divergence suggests that the current downtrend may continue. Despite the bearish sentiment, there is potential for a reversal if market conditions improve. POL could find support around $0.48, and if the trend reverses, it may reclaim the $0.53 level. However, the current market dynamics indicate that investors should remain cautious and closely monitor the situation.
