- POL has dropped 18.90% over the past week, with bearish trends dominating the market and no signs of recovery visible.
- Increased exchange reserves and declining market activity suggest further price declines and reduced investor confidence.
The cryptocurrency POL has seen a significant downturn over the past week, with its price falling by 18.90% amid a bearish market trend. Over the last 24 hours, the asset recorded an additional 1.15% decline, reflecting intensified downward pressure and a lack of buyer momentum.
Descending Channel Limits POL’s Upside Potential
POL is currently trading within a descending channel, a pattern defined by lower highs and lower lows. The asset’s price hovers near the mid-range support level of $0.4731, with a secondary support level at $0.4583. Historically, these levels could offer a springboard for a rebound, but POL has failed to exhibit signs of a recovery. The lack of upward momentum suggests that bearish sentiment continues to dominate.
Exchange Reserves Surge, Raising Concerns
Data reveals a significant increase in POL’s exchange reserves, which climbed to over 57 million—up by 2 million within a day. Such growth often indicates heightened sell pressure as traders move holdings to exchanges in preparation for liquidation. This trend is typically a precursor to further price declines.
The decline in the number of active addresses, which has dropped to 1,231, adds to the bearish outlook. Reducing active addresses often signals diminishing investor confidence and reduced participation, further weakening market activity.
Market Activity Declines Sharply
Transaction data highlights a decline in trading activity, with the 7-day average transaction size falling to $13,796.37 and the 24-hour average dropping to $4,908.63, the lowest level this week. This suggests a sharp reduction in the volume of POL transactions, reflecting decreased market engagement.
In parallel, open interest in POL has fallen by 2.60% to $88.30 million, reducing active positions as traders close contracts in response to the downtrend. Liquidation trends also favour short positions, with long contracts worth $225,670 being liquidated over the past day compared to $58,380 in short positions.
With reduced investor interest, a surge in exchange reserves, and declining market activity, POL faces continued downward pressure. Unless a strong reversal signal emerges, the asset’s bearish trajectory will likely persist in the short term.
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