The cryptocurrency market today is grappling with bearish momentum as Bitcoin experiences a sharp 2.82% decline, bringing its price down to $101K from its recent high of $108K. This downturn follows the Federal Reserve’s recent rate cut of 0.25%, along with comments from Chairman Jerome Powell stating the central bank cannot own Bitcoin.
80M Token Sell-off by Whales
Polygon's recent bearish performance has caused concern among traders and whales. POL, already facing a downtrend, has dropped by 20% over the past week and more than 5% in the last 24 hours. According to crypto analyst @ali_charts, whales have offloaded over 80 million Polygon tokens in the past 48 hours, valued at approximately $50 million at an average price of $0.62, adding further downward pressure on the asset.
Technical Analysis
Polygon has been consolidating within a descending triangle pattern since the bull run of 2021. On December 6, POL was rejected at the upper trendline resistance of $0.76, triggering its recent decline. Currently, POL is trading at $0.52 after bouncing off a minor support level at $0.49. If this level holds, the token could potentially recover, targeting the next resistance at $0.58. However, if the $0.49 support fails, POL risks dropping further to its bottom support level of $0.44, which could test the patience of long-term holders.
What’s Next?
Polygon's immediate future depends on its ability to hold support at $0.49 and navigate broader market bearishness. A rebound from this level could restore confidence and attract buyers back into the market, potentially sparking a rally toward $0.58. Conversely, a break below $0.49 could lead to further downside, with $0.44 as the next critical level to watch.
The cryptocurrency market faces challenges amid a sharp Bitcoin decline, affecting altcoins like Polygon. Investors should carefully monitor key technical levels and the overall market.
