Key Insights:
- Polygon’s daily chart at the time of writing was in a downtrend channel that started in December 2024 and looked poised to continue with the decline.
- Polygon is among projects seeing the highest rises in whale transactions ($100K+ or more) over the past week.
- As of press time, Polygon’s open interest and volume were ticking up.
Since early December 2024, Polygon price has been in a downward-sloping channel pattern. It experienced repeated resistance at the upper boundary.
Polygon price traded at $0.1963 in the middle of the boundaries with three instances of piercing through the downward trendline.
The bearish structure remained strong because the price created new lower highs and lower lows during this period.
MACD indicator was on the negative side with lines registering -0.0131 for MACD and -0.0141 for signal reflecting constant bearish pressure.
However, the histogram reflected feeble efforts towards bullishness with its positive reading of 0.0010, but the overall trend was downward.
Polygon price could reach the $0.1670 lower channel boundary as long as its decline persists.
If the price breaks through this support level, it could lead to additional price declines, which could reach $0.1500 or lower.
A rise in buying pressure that advances the price above $0.2500 could possibly trigger Polygon to pursue a price push toward $0.3200 to test former resistance levels.
The negative indicators from the MACD suggested that price would need increased momentum before shifting to bullish direction.
Polygon’s market trend showed that sellers had control leading to an unbroken fall unless price action reached $0.2500 or above.
POL’s trading volume would be needed to accompany any price rise to $0.3200 to confirm a breakout as this level matched with previous resistance points.
The market structure indicated bearish pressure could keep advancing but brief periods of relief activity may create brief upward movements prior to new selling waves.
The MACD histogram showed rising positive activity but the current market sentiment remained controlled by the downward trend.
Polygon Whale Transactions Skyrocket
However, the number of Polygon whale transactions exceeding $100K increased by 1116% last week, ranking 7th as per Santiment.
DEXE stood as the highest with its 340% increase followed by NEXO at 200%, OKB, MKR, GALA, and USDe forming the remaining part of this group ahead of POL.
Large amounts of capital from whales indicate that substantial price changes could occur.
Despite a 111.16% spike in whale’s transactions, Polygon’s, price dropped to $0.1963 indicating strong bull potential but also swirling volatility and increased trade closes.
The rise in institutional interest for Polygon could, as well, mean a possible price growth.
However, the aggressive market competition created potential threats for POL.
Polygon needed long-term whale involvement to secure market position while the path to success required managing market mood alongside rivalry.
Observation of these drifting events should be a top priority for investors.
Polygon’s Open Interest and Volume
Again, the market showed restraint as analysis suggested bullish indicators from Polygon.
The markets signaled a shift in sentiment since key exchanges presented positive funding rates after a prolonged period of dominance by shorts.
The number of retail traders going long continued to increase with centralized exchanges exhibiting long positions more than short positions.
Open interest and trading volume are up, signaling the entry of financial capital ahead of market developments.
New liquidations also refined weaker market positions that may lead to stability.
The price of POL remained below the $0.20 level without clear signs of interruption in either direction.
The current market state could provide rally conditions or could be a sign of indecision, which could result in a reversal.
Generally, the future movement of the market showed ambiguity.