Polygon (POL) Whales Dump 80M Tokens as Bearish Sentiment Spreads Among Investors

Since hitting a recent high of $0.7675 two weeks ago, Polygon [POL] has struggled to maintain an upward momentum. As a result, the altcoin has declined

Polygon (POL) whales have sold over 80 million tokens, impacting price.

After hitting a recent high of $0.7675 two weeks ago, Polygon (POL) has faced challenges in maintaining an upward momentum. This led the altcoin to hit a local low of $0.48 with a continuous decline.

As POL’s price continues to drop, most investors are closing their positions and selling to avoid further losses. This trend has been particularly persistent, especially among whales.

Polygon whales sell 80 million tokens

In his analysis, Ali Martinez observed that Polygon whales have been selling, with over 80 million POL tokens sold by these whales.

According to his findings, these whales sold over 80 million POL tokens, amounting to $41.2 million, within the last 48 hours.

Usually, increased whale dumping leads to higher selling pressure, pushing prices down. This was evident in a dropping Relative Strength Index (RSI). The RSI dropped from 71 to 40, nearing the oversold territory. This indicated that most holders are currently selling, as seen with whales.

When whales begin selling, it showcases their lack of confidence in the direction of the market. They sell to capitalize on recent gains and minimize further losses. As whales turn bearish, it serves as a warning signal to retail traders regarding an impending dip.

This bearishness has spread among retail traders, indicated by a higher volume of short positions. According to Coingelle, most investors are taking short positions. With 55% of total positions, it implies that the majority of investors anticipate prices to decline soon.

Impact on POL’s charts?

As observed, whale market sentiment has turned negative following POL’s sustained decline over the past week.

The continued selling by whales is reflected in the POL price charts. At the time of writing, Polygon is trading at $0.5176. This marks a 6.22% decline on daily charts. The altcoin has also declined on weekly charts, dropping by 21.31%.

This decline over the past week amidst increased selling suggests that the downtrend is continuously strengthening. The Directional Movement Index reinforced this as ADX sat above +DI at 28.

This downtrend is further confirmed by a negative Price DAA divergence. When this sees a sustained drop, it validates the continuation of the current price trend.

Hence, with a strong downward momentum, POL could see more losses on its price charts. In a drop, Polygon will find support around $0.48. However, if the trend reverses, POL will reclaim $0.53.