Polygon (POL) experiences a significant price decline as whales offload their holdings, fueling a bearish trend that attracts short positions from retail investors.
As a result of the sustained decline, the altcoin has dipped to a local low of $0.48. With POL’s continued downward trend, most investors are closing their positions, selling to avoid further losses. This trend is particularly evident among whales, who have turned to selling. Data shows that Polygon whales have sold over 80 million POL tokens worth $41.2 million in the past 48 hours. Increased whale dumping typically leads to higher selling pressure, pushing prices down.
This is reflected in the dropping Relative Strength Index (RSI), which has fallen from 71 to 40, nearing oversold territory. This dip indicates that most holders are currently selling, as seen with the whales. When whales start selling, it signals their lack of confidence in the market’s direction. They sell to capitalize on recent gains while avoiding potential losses. With whales turning bearish, it serves as a warning sign for retail traders about a possible dip. This bearish sentiment has spread among retail traders, signaled by a higher number of short positions. According to Coinglass, most investors are taking short positions, with 55% of total positions indicating that most anticipate prices to decline soon. The observed negative market sentiment among whales follows POL’s sustained decline over the past week. The continued selling by whales is visible in the POL price charts. At the time of writing, Polygon is trading at $0.5176, marking a 6.22% decline on daily charts. The altcoin has also dropped by 21.31% on weekly charts. This decline over the past week, coupled with increased selling, suggests that the downtrend is strengthening. The Directional Movement Index supports this, with ADX sitting above +DI at 28. This downtrend is further confirmed by a negative Price DAA divergence. When this sees a sustained drop, it validates the continuation of the current trend. Therefore, with strong downward momentum, POL could experience further losses on its price charts
CRYPTOCURRENCY POLYGON WHALES SELLING PRESSURE MARKET SENTIMENT
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