The rebranded Polygon (POL) lost value amid heavy selling by whales.
Polygon, the largest Ethereum scaling solution by market cap, has completed its rebranding process by converting its native token MATIC to POL, noting that institutional demand will increase in the process.
However, the rebranded POL performed negatively, contrary to expectations. Polygon whales sold 80 million POL tokens worth a total of $41.2 million in the last 48 hours.
POL has lost more than 5% of its value in the last 24 hours.
Polygon (POL) under pressure$POL
Layer-2 solution Polygon (POL) reached an all-time high of $0.7675 two weeks ago. However, after this rise, POL lost value and fell to $0.48. According to AMBCrypto, many investors closed their bullish positions due to the decline in POL.
Crypto analyst Ali Martinez, in his post on the X platform, evaluated the sale of POL tokens by whales as a serious development. Martinez pointed out that the sale of 80 million POL by whales in a few days created significant selling pressure.
AMBCrypto noted that whale selling could put pressure on the price, causing further declines. He also noted that the Relative Strength Index (RSI) has fallen and individual investors have started selling. On-chain data platform Coinglass reported that investors are taking more bearish positions and 55% of futures transactions are short positions.
POL Price Analysis
POL is down more than 5% on the daily chart and down more than 20% on a weekly basis.
The following evaluations were made in the analysis:
“The decline during this period of increased selling pressure shows that the bear market is gaining strength. Indicators such as the Directional Movement Index (ADX) further strengthen the possibility of a decline.”
The analysis highlighted that the downtrend was confirmed and sales continued to increase.
AMBCrypto stated that in the event of a possible decline, POL will try to hold on to the support level of $ 0.48. It was stated that if this support level is broken, the price may fall further. However, if POL can hold on to the level of $ 0.48, it is predicted that a recovery to $ 0.53 may occur.
