Polygon (POL) Whales Accumulate 59M Tokens, But Is POL Undervalued?

Polygon [POL] whales took advantage of the discounted window offered by the recent price pullback and scooped 59M POL tokens in the past 48 hours.

Whales added 59 million POL to their bags as the altcoin clocked a 20% rally in the past week.

However, despite the gains, the majority of POL holders remained underwater. Could this support the whales’ bullish price expectations?

Whales bought 59M POL tokens in 24 hours

Whales took advantage of the discounted window offered by the recent price pullback and scooped 59M POL tokens in the past 48 hours.

The move comes amid increased altcoin season momentum across all sectors. But do the current valuation and profitability support a massive upside potential as expected by these whales?

Is POL undervalued?

According to IntoTheBlock data, despite the double-digit unrealized profit seen by short-term holders, they only accounted for 10% of total POL holders in profit.

In other words, over 85% of users (+500K addresses) were still underwater. At the same time, those currently at break-even were less than 4% (23K users).

This means most holders were still at a loss despite the ongoing rally. The vast losses meant that users could hold to at least break even and recover their initial capital, rather than sell at a loss.

If so, that could be a net positive for POL’s upside rally and, by extension, support the recent whale moves.

Price action analysis

On the price chart, POL had a lot of headroom for its uptrend to continue, as shown by the low On Balance Volume (OBV).

AMBCrypto had previously projected that a move above $0.6 could accelerate the price recovery.

A decisive surge above $0.8, which coincided with a three-month price range in early 2024 and 50-61.8% Fib levels, could be a strong signal for the uptrend continuation.

If POL targets March highs of $1.2, nearly 160% of potential gains could be tapped.