Polygon (POL) Faces Strong Selling Pressure as a Whale Offloads 5.64M POL Worth $2.28M to Coinbase, Taking a $1.32M Loss

Polygon [POL] faces strong selling pressure as a whale offloads 5.64M POL worth $2.28M to Coinbase, taking a $1.32M loss. The whale accumulated these tokens

A substantial amount of selling pressure is being applied to Polygon [POL] as a large entity transfers 5.64 Million POL tokens, valued at $2.28 Million, to Coinbase, incurring a loss of $1.32 Million. The whale began accumulating these tokens two months ago at a cost of $3.6 Million. This recent action may indicate a shift in sentiment towards the token.

Furthermore, this activity adds uncertainty to POL's price movements, which have already faced difficulties maintaining crucial support levels. As bearish momentum continues to build, it remains to be seen whether buyers will intervene to regain control.

POL's price action: Will support hold or break further?

At press time, POL is trading at $0.411, reflecting a modest gain of 3.13% over the past 24 hours. Despite this slight recovery, the price has broken below a key demand zone at $0.45, indicating sustained bearish pressure.

Moreover, the descending wedge pattern on the lower timeframes suggests that further downside is possible unless buyers can reclaim higher levels of support. Hence, if POL fails to hold above the $0.40 level, a deeper correction could follow.

Source: TradingView

In/Out of the money: Are holders facing more losses?

According to on-chain data, 93.51% of POL holders are out of the money, indicating that they purchased the tokens at higher prices. In contrast, only 4.58% of addresses are in profit, highlighting weak investor confidence.

With heavy resistance at $0.43 – $0.45, the bulls must break through this range to shift momentum. However, failure to do so could lead to more selling pressure and deeper losses.

Source: IntoTheBlock

Address stats: Is network activity declining?

The number of new addresses has fallen by 58.67%, while active addresses decreased 44.34% over the past week. This significant decline in network activity suggests weakening user engagement, which is often bearish for price action.

Furthermore, lower participation could mean less demand for POL, making recovery harder. Hence, if network activity does not rebound, POL could struggle to gain upward momentum.

Source: IntoTheBlock

Transaction stats: Are large institutional investors still buying?

Polygon transactions between $100K and $1M surged by 620%, indicating increased activity among institutional investors. However, transactions below $100 have dropped sharply, showing that retail interest is fading.

It's worth noting that retail traders play a crucial role in sustaining rallies, and their absence could delay any recovery. Therefore, without strong participation from retail traders, POL may continue to face downward pressure.

Source: IntoTheBlock