Polygon (POL) is under strong bearish pressure after a whale offloaded 5.64 million POL tokens worth $2.28 million to Coinbase, incurring a $1.32 million loss. This whale had accumulated these tokens for $3.6 million over the past two months, indicating a possible shift in sentiment. With POL struggling to hold key support levels, investors are now questioning whether buyers can step in to prevent further declines.
POL Price Action: Will Support Hold?
At press time, POL trades at $0.411, marking a 3.13% increase in the past 24 hours. However, the token has slipped below the critical demand zone at $0.45, reinforcing the bearish outlook. Additionally, a descending wedge pattern hints at the possibility of further downside unless buyers reclaim higher price levels. If POL fails to stay above $0.40, a deeper correction could ensue, placing additional pressure on the market.

Holders Facing Heavy Losses
On-chain data shows that 93.51% of POL holders are currently out of the money, meaning they bought at higher prices. In contrast, only 4.58% of addresses remain in profit, underlining weak investor confidence. With significant resistance between $0.43 and $0.45, bulls must reclaim this range to shift the momentum. Failure to do so could invite further selling pressure, exacerbating losses.

Declining Network Activity: A Bearish Signal?
The number of new addresses on the Polygon network has plummeted by 58.67%, while active addresses have declined by 44.34% over the past week. This sharp drop suggests waning user engagement, often a bearish signal for price action. Additionally, lower participation rates indicate reduced demand for POL, making price recovery more challenging.

While transactions between $100K and $1M surged 620%, suggesting increased institutional activity, transactions under $100 have dropped significantly. This indicates a decline in retail interest, which is essential for sustaining rallies. Without strong retail participation, POL may continue facing downward pressure.
Also Read: Polygon (POL) Price Consolidates Between $0.43-$0.53: Will a Bullish Breakout Above $0.53 Follow?
With whale exits, declining network activity, and weak retail interest, Polygon faces a challenging recovery. Unless the token reclaims $0.45, bullish momentum will remain limited. With persistent selling pressure and reduced demand, a deeper correction appears more likely in the near term.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.