Polygon (POL) is down: Can it recover?

Rebranded Polygon (POL) has fallen, accompanied by heavy selling by whales.

#Polygon , the largest Ethereum scaling solution by market value, has switched its native token from #MATIC to POL. It was emphasized that institutional demand will increase during the rebranding process.

Having completed the rebranding process, POL performed below expectations. Polygon whales sold 80 million POL worth $41.2 million in the last 48 hours. POL has lost more than 5 percent in the last 24 hours.

Layer-2 project #Polygon (POL) reached an all-time high of $0.7675 two weeks ago. POL, which has been losing value since the rise in question, has reached a low of $0.48. According to AMBCrypto, many investors are closing their positions (risk/long) due to the decline in POL.

Crypto analyst Ali Martinez touched on whales selling POL in a post he published on X. Martinez described the whales selling 80 million POL in a few days as a serious situation.

AMBCrypto suggested that whales' sales could create high selling pressure and this could pull the price down. Reminding that the Relative Strength Index (RSI) has fallen, AMBCrypto stated that individual investors have also started selling.

On-chain data platform Coinglass reported that investors have started to take short (bearish) positions. According to the data, short positions constitute 55 percent of futures transactions.

POL lost more than 5 percent in the daily chart, while it fell more than 20 percent in the weekly chart.

The analysis included the following statements; “The decline that occurred amid increasing sales shows that the bearish outlook is strengthening. The scenario formed in the Directional Movement Index, an indicator, also strengthens the possibility of a decline.”

AMBCrypto stated that in a possible decline, #POL will try to hold on to the $0.48 support, and if the support point is broken, the price will lose more value. According to the analysis, if POL can hold on to $0.48, it can regain $0.53.