The lack of confidence in POL has led to massive sell-offs by major holders, raising doubts about the asset's price stability.

• Whale activity is intensifying, leading to a sharp drop in POL prices due to massive sell-offs.
• A breach of the critical support level of $0.3634 could lead to further significant declines.

Polygon [POL] has increased by 13.74% in the past week, but changes in market sentiment have led to a bearish trend for this asset.

In the past 24 hours alone, the POL price has dropped by 8.12%, and there are signs of further declines.

Whale sell-offs accelerate POL's decline

POL is facing significant selling pressure, with whale activity driving a sharp decline and triggering a bearish shift.

Two key indicators from IntoTheBlock - the net flow of large holders to exchanges and the large transaction volume - highlight this trend.

The net flow of large holders to exchanges ratio measures the rate at which assets flow from large holders (or "whales") to exchanges. A surge in this ratio, along with a price decline, typically indicates increased selling pressure.

For POL, this ratio has surged by 737.00% in the past 24 hours and by 2,474.58% in the past 7 days, as whales sell off their holdings, consistent with the broader bearish sentiment.

The increase in large transaction volume further reinforces this bearish sentiment, with 78 large transactions recorded during this period.

Will it stop declining or rebound?

The daily chart shows that despite the ongoing whale sell-offs, POL may find a temporary bottom at a critical support level, potentially laying the foundation for a rebound.

The $0.3634 support level may exert enough buying pressure to reverse the trend, with a potential price rebound target of $0.5792.

However, if the selling pressure from large holders persists, POL faces the risk of further declines, potentially reaching $0.2855.

Increasing retail selling pressure

According to IntoTheBlock data, POL's open interest contracts reached a peak of $1.9856 million on November 9th, but have since sharply declined to $1.4253 million in the past 24 hours.

As a result, shorts now dominate the market's unsettled derivative contracts.

Coinglass's liquidation data further reflects this bearish sentiment: only $249,800 in short contracts were liquidated, while long contract liquidations have surged to $6.8575 million.

This imbalance highlights the prevailing bearish trend, with a large number of long trades being liquidated.

Given this shift, the likelihood of further declines in POL appears higher than any expected rebound.