Polygon – Assessing impact of $41.2M whale dump on POL

POL declined by 6.11% over the past 24 hours.
Polygon whales sold 80 million tokens worth $41.2 million.

As a seasoned researcher with years of experience in the ever-changing cryptocurrency market, I find myself constantly monitoring the trends and patterns that shape the digital asset landscape. Today, my attention is drawn to Polygon [POL], which has been experiencing a significant downturn over the past few days.

Over the past fortnight, Polygon (POL) has found it challenging to sustain its positive trajectory following a peak at $0.7675.

Consequently, the value of the altcoin dropped to a recent minimum of $0.48. With Pol’s ongoing downward trend, many investors are choosing to liquidate their holdings to prevent additional losses. This pattern is particularly noticeable among large-scale traders, who have been selling off aggressively.

Polygon whales sell 80 million tokens

Ali Martinez found in his examination that large investors (whales) of Polygon have started offloading their tokens. He mentioned that these big investors have sold approximately 80 million POL tokens, equating to a value of around $41.2 million, during the last two days.

When there’s an increase in the selling of whales, which is often the case when they offload their holdings, it leads to a surge in supply and subsequently decreases the price due to increased market pressure. This trend can be observed by noticing a decrease in the Relative Strength Index (RSI), such as when it falls from 71 to 40, approaching oversold territory. Such a decline suggests that many holders are currently disposing of their assets, a behavior that is characteristic of whales.

When large investors (whales) decide to offload their holdings, it often indicates they are uncertain about the market’s future trajectory. They choose to cash in on existing profits and minimize further losses. When these big players adopt a bearish stance, it serves as a red flag for smaller traders, suggesting that a market downturn might be imminent.

The sentiment of pessimism is growing among individual investors, as indicated by a rise in the number of positions taken for potential price drops, known as ‘shorting’. According to Coinglass, a significant majority of investors are adopting this strategy, with approximately 55% of all positions held. This suggests that the vast majority of investors expect prices to drop in the near future.

Impact on POL’s charts?

From my observations, I’ve noticed that the sentiment within the whale market has shifted towards negativity due to the consistent downturn of POL over the last seven days.

Over the past day, the persistent selling by whales can be seen in the Polygon price graphs. Currently, Polygon is being traded at $0.5176, which represents a decrease of 6.22% compared to its previous daily prices. Interestingly, when we look at the weekly charts, Polygon has also experienced a drop – it’s currently down by 21.31%.

Over the past week, I’ve observed a noticeable decrease in our position, which seems to be driven by heightened selling activity. This trend appears to be gaining momentum, suggesting a persistent downward trajectory. Interestingly, the Directional Movement Index corroborates this observation as its ADX value remains above the +DI at 28, indicating a strengthening downtrend.

The downward trend becomes more evident with a decrease in Price DAA, which suggests that this decline may persist for an extended period.

Given the significant drop in price, it’s likely that Polygon (POL) may continue to see further decreases on its charts. If a downward trend continues, Polygon might find support near $0.48. But if the trend changes direction, we could expect Polygon to regain control above $0.53.

2024-12-19 12:07

Polygon whales sell 80 million tokens

Impact on POL’s charts?

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