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POL’s Extended Downtrend – Is There Any Upside in the Short-Term for Its Price?
Polygon (POL) is continuing to spiral downward, with no signs of a reversal on the charts. Despite initially trading within a broader bullish structure, the asset has succumbed to intense selling pressure, resulting in an 18.90% loss over the past week.
At press time, POL is struggling to find support, having dipped by 1.15% over the last 24 hours alone. This downturn has only strengthened the bears’ grip on the market, and it’s becoming increasingly unlikely that the price will bounce back anytime soon.
One possible reversal point could be seen in the descending channel pattern, as this might potentially prompt a buy signal. However, further analysis suggests that the likelihood of such an event is minimal.
The bearish sentiment dominating the market has been fueled by a surge in selling activity and a drop in active addresses. Data reveals that exchanges are now holding more than 57 million POL tokens, representing a significant increase from the day prior. This uptick often precedes sell-offs, driving the price of POL further down.
Moreover, the number of active addresses involved with the asset has dwindled to just 1,231, indicating diminishing investor interest. Typically, this decline is accompanied by reduced trading activity and, as a result, diminished upward pressure on the chart.
Furthermore, the average transaction size for the last seven days stands at $13,796.37, while the 24-hour reading hit its lowest point of the week with a paltry $4,908.63. These statistics underscore the dwindling value of POL being transacted, which is usually synonymous with reduced market activity.
On top of this, traders are now facing closed positions as Open Interest declined by a significant 2.60% to reach $88.30 million. This indicates that numerous contracts have been settled in favor of short traders, further reinforcing the downward momentum of POL’s price.
Based on these trends and indicators, it is increasingly challenging for the market to find any upside in the near future.
Source: ambcrypto.com
