The latest market developments indicate that they are not only related to what has happened but also to what could happen. The latest 25 bps rate cut and the Fed's outlook for 2025 have harmed the prices of Bitcoin and other altcoins in the market. Since BTC's price surged above the consolidation level of around $102,000 heading towards ATH, whales have intensified their activities while increasing their holdings.
In the past few days, whales have been observed buying two tokens, Polygon and Ethena, right after BTC's price surpassed this range. According to data from Santiment, whales have accumulated over 36.65 million Ethena and more than 40 million Arbitrum in the past week. These accumulations are recorded by wallets holding from 1,000,000 to 10,000,000 ARB or ENA tokens. Meanwhile, the price of ENA continues to maintain a steady upward trend, while the price of ARB continues to decline sharply.
After the latest price reversal of ENA, the buyers have continuously failed to defend the support levels. However, they are doing their utmost to prevent the price from breaking below the support zone between $0.83 and $0.79 as sell-offs continue to accumulate. Additionally, the MACD confirms increasing buying pressure while the super trend has turned bearish, indicating that a breakout below these levels may be imminent.
Moreover, whale activity on other platforms has also increased, but unfortunately, they have sold their stakes instead of buying in. Polygon (POL) has witnessed a significant sell-off, mainly due to whales holding between 10 million to 100 million shares, who have sold over 80 million shares of POL in the past 48 hours. There are concerns that this will push the price of MATIC into a short-term decline or potentially expect a significant trend for POL's bullish phase.
The current trading setup of POL indicates that the price is in an extremely dangerous state, losing another 15% before the year ends. The price is testing the neckline of the head & shoulders pattern, and a breakout from here could lead to a prolonged bearish action below $0.45. Meanwhile, the RSI has turned bearish with the baseline & conversion line of the Ichimoku cloud undergoing a bearish crossover, confirming the bearish claim. However, if the price attempts to maintain in the range from $0.49 to $0.51, the bearish narrative may be extinguished for a while.