Massive Liquidity Outflows from POL Indicate Potential Price Decline

Polygon (POL) has experienced bearish trends, with a 34% drop in the last month and a 4.53% decline in the past 24 hours. As more liquidity moves out of the asset, a further price decline appears likely.

Significant Liquidity Outflow

In the last 24 hours, POL has seen substantial chain netflow decline, indicating liquidity withdrawals and bearish sentiment. Over $13.2 million worth of POL has been sold, causing 99.73% of holders to be at a loss, heightening the risk of a sell-off and further price drops.

Possible Path to $0.24

If POL breaks the support level at $0.278, it could decline to the liquidity zone of $0.243, revisiting a low from February 3rd. Increased selling pressure could push POL below this level, establishing a new low.

Market Sentiment

Both spot and derivatives markets align with the bearish outlook. In the last 24 hours, a 1.29% drop in Open Interest to $78.41 million coupled with a 73.18% rise in volume to $68.09 million suggests strong selling momentum. Recent exchange netflow also indicates selling behavior, with $181,500 worth of POL sold within three hours.