Polygon (POL) is facing increasing pressure as whales exit, prices drop, and network activity weakens. Despite strategic partnerships, on-chain metrics suggest continued bearish momentum, raising concerns about the token’s ability to recover.
Whales Are Selling, Bearish Pressure Intensifies
A major crypto whale recently sold 5.64 million POL on Coinbase for $2.28 million, incurring a $1.32 million loss after accumulating the tokens for $3.6 million over the past two months. This significant sell-off indicates a shift in sentiment, adding further uncertainty to POL’s price trajectory.
Will POL Continue to Decline?
At the time of writing, POL is trading at $0.411, marking a 3.13% increase in the past 24 hours. However, the price has fallen below the critical support zone of $0.45, signaling persistent selling pressure.
A descending wedge pattern is forming, indicating a potential continuation of the downtrend if buyers fail to reclaim higher levels. If POL falls below $0.40, deeper corrections could follow.
Most POL Investors Are in the Red
On-chain data reveals that 93.51% of POL holders are at a loss, having bought at higher prices. Meanwhile, only 4.58% of addresses remain in profit, highlighting weak investor confidence.
For a bullish reversal, buyers need to break through the $0.43 – $0.45 resistance zone. Failing to do so could trigger more selling pressure and deepen market losses.
Declining Network Activity Raises Concerns
Over the past week, new addresses have dropped by 58.67%, while active addresses have fallen by 44.34%. This significant decline in user engagement is often a bearish indicator for price action.
Lower participation could signal reduced demand for POL, making recovery more difficult. If network activity doesn’t rebound, POL may struggle to regain its bullish momentum.
Are Large Investors Still Buying?
While transactions between $100,000 and $1 million have surged by 620%, transactions under $100 have plummeted. This suggests that institutional investors are still active, but retail interest is dwindling.
Retail investors are crucial for sustaining rallies, and their absence could delay any potential recovery while keeping POL in a weakened state.
Will POL Recover or Face Further Declines?
Polygon is currently facing whale exits, declining network engagement, and weaker retail participation. If the price doesn’t reclaim $0.45 soon, bullish momentum will likely remain limited.
With ongoing selling pressure and weak demand, further corrections seem more likely. Without strong buying support, POL may continue testing lower price levels in the near future.
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