Polygon [POL] gained 13.74% over the past week, but a shift in market sentiment has resulted in a bearish trend for the asset.
In the past 24 hours alone, POL price has dropped by 8.12% and is showing signs of further decline.
Whale selling accelerates POL decline
POL is facing significant selling pressure, with whale activity driving a sharp drop and triggering a bearish turn.
Two key metrics from IntoTheBlock — the large holder net flow to exchanges ratio and large trade volume — highlight this trend.
The net flows to exchanges ratio measures the rate at which assets are flowing from large traders (or “whales”) to exchanges. A spike in this ratio, along with a drop in prices, typically indicates increased selling pressure.
For POL, the ratio has surged 737.00% in the past 24 hours and 2,474.58% in the past seven days, in line with broader bearish sentiment as whales dumped their holdings.
This bearish sentiment was further reinforced by the increase in large trade volume, with 78 large trades recorded during the period.
Is it possible to stop falling or rebound?
The daily chart shows that despite continued whale selling, POL may have found a temporary bottom at a key support level, potentially setting the stage for a rebound.
The $0.3634 support level could exert enough buying pressure to shift momentum, with a potential price rally target at $0.5792.
However, if the selling pressure from large holders persists, POL is at risk of further declines to $0.2855.
Retail sales pressure intensifies
According to data from IntoTheBlock, POL’s open interest has dropped sharply to $1.4253 million in the past 24 hours after reaching a peak of $1.9856 million on November 9.
As a result, shorts now dominate the market’s unsettled derivative contracts.
Coinglass’ liquidation data further reflects this bearish sentiment: only $249,800 in short contracts were closed, while long contracts closed have surged to $6,857,500.
The imbalance highlights the prevailing bearish momentum, with a large number of long trades being liquidated.
Given this shift, the likelihood of further declines in POL appears higher than any expected rebound.
