Polygon (POL) Maintains Bullish Stance Despite Alameda Research Dumping 2 Million POL Tokens

Since hitting a local low of $0.35, Polygon [POL] has experienced a sustained uptrend to hit a recent high.

Cryptocurrency exchange Alameda Research has been on a selling spree, shifting a total of 2 million Polygon (POL) tokens, valued at approximately $915K, based on current market rates.

This activity has sparked curiosity and raised questions regarding its potential impact on Polygon’s price charts.

Alameda’s selling spree spans over the last seven days, with the exchange shifting a total of 4.5 million tokens, collectively valued at $1.98 million. This selling activity has brought Alameda’s average selling price to $0.44, while the exchange’s average acquisition cost for the tokens it still holds stands at $0.000004.

Typically, when large crypto holdings are sold and the market is unable to absorb the selling pressure, prices tend to decline. However, in the case of Polygon, despite Alameda’s selling activities, POL was still experiencing strong positive sentiment and remained in a bullish phase.

As such, while the market anticipated selling pressure to arise from these activities, it seemed that Polygon was handling things very well. This is evident in the token’s price chart, which showed a strong uptrend.

At the time of this writing, Polygon was trading at $0.5406. This marked a 17.59% increase over the past 24 hours. Equally, the altcoin has surged on weekly and monthly charts, rising by 34.38% and 51.88% respectively.

From a technical analysis perspective, this uptrend has created room for long-term holders to take profits. One of these long-term holders is Alameda Research. The exchange acquired its Polygon holdings at an early stage, when the token was still trading at a fraction of a cent.

Now, with Polygon trading at over $0.5, Alameda is able to sell its holdings at a substantial profit. However, these profits are being realized gradually, in order to avoid spooking the market and triggering a sell-off.

Overall, Alameda’s selling activities are unlikely to have a major negative impact on Polygon’s price. However, if the market is unable to absorb the selling pressure, we could see a pullback in the coming days.