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The recent activities of Polygon whales reveal a significant sell-off, with 80 million POL tokens exchanged for $41.2 million within just 48 hours.
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This bulk sell-off represents a broader trend of bearish sentiment in the crypto market, as many investors move to secure profits or cut losses.
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“The shift in whale behavior typically signals market confidence issues,” noted crypto analyst Ali Martinez during his recent commentary on POL’s performance.
This article discusses the alarming sell-off of 80 million POL tokens by Polygon whales, its impact on market sentiment, and price analysis.
Polygon whales sell 80 million tokens
In his analysis, Ali Martinez observed that Polygon whales have turned to selling. According to him, whales have sold over 80 million POL tokens worth $41.2 million over the past 48 hours. This mass exit from the market coincides with a decline in POL’s price, which hints at a potential shift in market dynamics.
Source: X
The increase in whale dumping typically results in heightened selling pressure, which has pushed POL’s prices down. This trend is evident in the dropping Relative Strength Index (RSI), which fell from 71 to 40, approaching oversold territory. This indicator suggests that the majority of holders are liquidating their positions, especially larger investors or ‘whales.’
When whales start selling, it signifies their lack of confidence in the market’s direction. They aim to cash in on recent profits or limit potential losses, which can serve as a cautionary sign for retail traders regarding a possible price dip.
Source: Coinglass
This bearish sentiment has cascaded through retail investors, reflected in an increase in short positions. Coinglass reports that 55% of total positions are now shorts, indicating expectations of further price declines among investors.
Impact on POL’s charts?
The market sentiment among whales has shifted dramatically following POL’s ongoing decline, which has been particularly pronounced over the past week. As of this writing, Polygon trades at $0.5176, reflecting a 6.22% drop within a single day. This is a stark contrast to weekly trends, where the altcoin has experienced a decline of 21.31%.
Source: Tradingview
This downtrend, coupled with increased selling activity, suggests that market momentum is swinging strongly negative. The Directional Movement Index (DMI) supports this viewpoint, with the Average Directional Index (ADX) reading above +DI at 28, indicating strengthening downward movement.
Source: Santiment
The persistent downward trend is further corroborated by a negative Price DAA divergence, reinforcing the likelihood of a continued decline.
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Given the substantial downward momentum, POL may experience additional losses. Support is anticipated around $0.48, though a potential reversal could see prices bounce back to the $0.53 mark.
Conclusion
The recent sell-off by Polygon whales underscores a broader trend of skepticism in the crypto market regarding the performance of POL. With a significant decline in its price and bearish positions proliferating among traders, the outlook remains cautious. Investors should remain vigilant for further developments and assess their strategies accordingly, as the market’s technical indicators suggest that the current downtrend may persist.
