The price of POL has fallen 18.90% over the past week, with bearish trends dominating the market and showing little sign of recovery. Over the past 24 hours, the asset saw an additional 1.2% decline, highlighting ongoing downward momentum and limited buying interest.
Price Locked in a Descending Channel
POL is trading within a descending channel, marked by consistent lower highs and lower lows. The current price hovers around the $0.473 support level, with $0.458 identified as a secondary support. While these levels could historically signal a potential rebound, Polygon has yet to show any signs of upward movement, suggesting bearish sentiment continues to hold firm.
Rising Exchange Reserves Signal Sell Pressure
Exchange reserves for POL have risen sharply, exceeding 57 million tokens after increasing by 2 million in a single day. This trend often indicates heightened sell pressure as more tokens are moved to exchanges for potential liquidation.
Investor confidence appears to be waning, as evidenced by a drop in active addresses to 1,231. Lower activity typically signals reduced market participation and further weakens overall sentiment.
Market Activity and Engagement Decline
Trading volumes have plummeted, with the 7-day average transaction size falling to $13,796 and the 24-hour average dropping to $4,908, the lowest observed this week. Open interest has also decreased by 2.60% to $88.30 million, as traders reduce their positions in response to the ongoing price downtrend.
Liquidation data shows long positions worth $225,670 being liquidated in the past day, far outweighing $58,380 in short positions, further reinforcing the bearish outlook.
With reduced market activity, increasing sell pressure, and diminished investor interest, Polygon’s downtrend seems likely to persist in the near term. A significant catalyst or reversal signal will be needed to counteract the current trajectory and restore positive momentum.
Disclaimer: This content does not constitute trading or investment recommendations. It’s essential to conduct your own research before purchasing any cryptocurrency or investing in any services.
