- The number of the largest POL whales, those holding the most tokens, has dropped sharply.
- A bullish trend reversal could see POL rise above $0.4 again.
polygon [POL] Recently, a major upgrade was implemented where the name of the token was changed along with some new updates. However, the latest update failed to drive price growth. During that time, unusual whale activity was noted.
What are the whales doing after the POL upgrade?
AMBCrypto Reported We previously reported that the upgrade from MATIC to POL went as planned by Polygon developers, with the Polygon team stating that it took a year of community discussion to upgrade POL as Polygon’s native token.
A few days after the upgrade, the POL whales made some big moves. Santiment recently Tweet This indicates that POL is one of several currencies that experienced a number of price anomalies after the whale exchange wallet supply suddenly shifted to the whale cold wallet supply.
Therefore, AMBCrypto decided to check the data from IntoTheBlock to see how MATIC supply allocation has been affected. According to our analysis, the number of addresses holding between 1 and 10 billion POL tokens has decreased by 50% over the past 30 days.
This metric clearly shows that the largest POL whales have been cut in half. In fact, during the same period, addresses holding less tokens have also declined.
Source: IntoTheBlock
Will Polygon see a price increase soon?
While all this was happening, POL’s price volatility was down. This was true as both the weekly and daily charts moved slightly. Therefore, AMBCrypto planned to check the token’s on-chain data to find out what we can expect in the coming days.
Analysis of Santiment's data revealed that social volume on the blockchain is declining, and this occurred despite Polygon recently implementing a significant upgrade.
Besides that, the MVRV ratio of POL is also declining, which can be inferred as a bearish signal.
What is interesting, however, is that while the number of whale addresses has decreased, buying pressure on the token has increased, as evidenced by a significant drop in on-exchange supply and a sharp increase in off-exchange supply.
Increased buying pressure generally leads to higher prices.
Source: Santiment
AMBCrypto then checked daily charts of tokens to spot potential POL targets. Fear and Greed Index I was in a neutral position.
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With the indicator reaching this level, it signals that the market can move in either direction over the next few days. If the bears continue to control the market, POL could quickly drop to $0.36.
However, if the bulls press on, it would not be surprising to see Polygon reach $0.41, above which the token could rise to $0.57.
Source: TradingView
