Date: Thu, Dec 19, 2024, 05:26 AM GMT

The cryptocurrency market today is grappling with bearish momentum as Bitcoin (BTC) experiences a sharp 2.82% decline, bringing its price down to $101K from its recent all-time high of $108K. This downturn follows the Federal Reserve’s recent rate cut of 0.25%, accompanied by remarks from Chairman Jerome Powell clarifying that the central bank cannot own Bitcoin.

As Bitcoin’s decline pressures the broader market, Polygon (POL) has been one of the worst-hit altcoins. POL, already on a bearish trajectory, has dropped by 20% over the last week and is down over 5% in the past 24 hours. It is currently trading at $0.52, with a market capitalization of $4.37 billion.

Source: Coinmarketcap

80M Token Sell-off by Whales

Polygon's recent bearish performance has dampened sentiment among traders and whales. While many old-school altcoins such as XRP, ADA, XLM, and HBAR have posted rallies, POL has struggled to keep pace.

According to a report by crypto analyst @ali_charts, whales have offloaded over 80 million Polygon tokens in the past 48 hours, valued at approximately $50 million based on an average price of $0.62. This massive sell-off has exerted additional downward pressure on the asset.

Source: @ali_charts (X)

Technical Analysis

Polygon has been consolidating within a descending triangle pattern since the bull run of 2021. On December 6, POL was rejected at the upper trendline resistance of $0.76, triggering its recent decline.

Currently, POL is trading at $0.52 after bouncing off a minor support level at $0.49 [Marked in blue line]. If this level holds, the token could stage a recovery, targeting the next resistance at $0.58. However, if the $0.49 support fails, POL risks falling further to its bottom support level of $0.44, which could test the patience of long-term holders.

What’s Next?

Polygon’s immediate future hinges on its ability to hold support at $0.49 and navigate through broader market bearishness. A bounce from this level could instill confidence and attract buyers back into the market, potentially sparking a rally toward $0.58. Conversely, a break below $0.49 could usher in further downside, leaving $0.44 as the next critical level to watch.

Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.