The cryptocurrency POL has experienced a significant downturn in the past week, with prices dropping by 18.90% amidst a bearish trend in the market. In the last 24 hours alone, the asset recorded another 1.15% decline, indicating increased downward pressure and a lack of buyer momentum. Currently, POL is trading within a descending channel pattern, characterized by lower highs and lower lows. The asset’s price is hovering near the mid-range support level of $0.4731, with a secondary support level at $0.4583. Despite these levels potentially serving as a platform for a rebound, POL has shown no signs of recovery, suggesting that bearish sentiment is still prevalent.
There has been a notable increase in POL’s exchange reserves, which have surged to over 57 million, up by 2 million in just one day. This uptick often signifies heightened sell pressure as traders shift their holdings to exchanges in anticipation of liquidation. The decrease in active addresses, now standing at 1,231, adds to the bearish outlook, indicating waning investor confidence and decreased participation in the market. Moreover, transaction data reflects 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 seen this week. This decrease in POL transactions demonstrates reduced market engagement, along with a drop in open interest by 2.60% to $88.30 million, signifying a decrease in active positions as traders close contracts in response to the downtrend.
With decreased investor interest, a rise in exchange reserves, and declining market activity, POL is facing continued downward pressure. Unless a strong reversal signal emerges, it is likely that the asset’s bearish trajectory will persist in the short term. The current market conditions provide little positivity for POL, and it will require a significant shift in sentiment or market conditions to see any potential for recovery. Investors and traders should remain cautious and monitor the situation closely to make informed decisions regarding their POL holdings.
