- POL has made a basic recovery over the past 24 hours, hiking by 1.22%.
- Polygon whales have started accumulating the dip with large holders’ inflow surging by 3624.46%.
Since hitting $0.76 in December 2024, Polygon [POL] has traded on a descending channel, making lower highs and lower lows.
Over this period, POL has declined to a low of $0.38. This marked a 10.42% decline over the past month.
This sustained downtrend has left analysts talking. Inasmuch, popular crypto analyst Ali Martinez has suggested a potential correction.
Source: X
In his analysis, Martinez noted that POL could be on the verge of a 44% correction to $0.23. Such a correction will result in the Polygon hitting a 3 months low.
According to him, a breakdown from the descending pattern will confirm the continuation of the bearish structure.
What POL charts suggest
Although Polygon is currently facing strong downward pressure, the altcoin is signaling a short-term recovery.
In fact, as of this writing, Polygon was trading at $0.4053. This marked a 1.22% recovery on daily charts.
Source: TradingView
We can see this short-term recovery from POL’s recent bullish crossover, which showed strengthening upward momentum. This crossover implies that sellers are exhausted and buyers are entering the market.
This scenario is further validated by a rising RSI, which has reversed from 33 to 38 signaling increased buying pressure.
Source: IntoTheBlock
This buying pressure is largely led by Polygon whales, evidenced by the large holder’s netflow, which spiked by 3624.46% from 1.84 million to 68.53 million at press time.
Such a massive upswing implies that more whale capital is flowing into the asset. When whale inflow dominates, it reflects bullish sentiments as they anticipate price recovery.
Source: Santiment
Additionally, Polygon has continually become scarce, with the stock-to-flow ratio rising to 1.43 million. This suggests that most investors acquiring the asset are accumulating by storing their POL tokens in cold storage.
Therefore, we can confirm that whales are actively accumulating the asset.
Source: Santiment
Read Polygon’s [POL] Price Prediction 2025–2026
Finally, with Polygon’s MVRV ratio still in the negative territory, it offers a buying opportunity as whales perceive the altcoin has been undervalued after this dip.
Simply put, although Polygon was experiencing strong downward pressure, the altcoin signaled a potential short-term recovery. If so, POL could reclaim $0.44, and if this level holds, a move to $0.47 is a possibility.
