$POL  extended downtrend – Is there ANY upside in the short-term for its price? - AMBCrypto Analytics

POL has seen a challenging week, dropping 18.90% amidst dominant bearish sentiment. A further 1.15% decline in the last 24 hours highlights the bears’ stronghold on the market, sparking concerns among traders about the asset's near-term prospects.

Technical analysis reveals that POL is trading within a descending channel, testing a critical support level at $0.4731, with another at $0.4583 below. While such patterns can sometimes foreshadow a bullish reversal, POL's lack of upward momentum raises doubts.

Adding to the bearish outlook, AMBCrypto’s on-chain analysis shows a sharp increase in exchange reserves, indicating heightened selling pressure. This aligns with the current downtrend, suggesting that a rally may not be imminent.

While descending channels often set the stage for rebounds, the combination of technical and on-chain factors underscores the potential for deeper losses. Traders should remain cautious and monitor market developments closely.