93% of POL holders face losses: Should you be worried?

• Whale sell-off and weak support levels increase POL’s bearish momentum despite bullish network partnerships.
• Declining network activity and fading retail interest suggest POL may struggle to regain upside momentum.

Polygon [POL] faces strong selling pressure as a whale offloads 5.64M POL worth $2.28M to Coinbase, taking a $1.32M loss. The whale accumulated these tokens for $3.6M over the past two months, suggesting a shift in sentiment. 

Additionally, this move adds uncertainty to POL’s price action, which has struggled to hold key support levels. Therefore, with bearish momentum growing, can buyers step in to regain control?

POL price action: Will support hold or break further?

At press time, POL trades at $0.411, showing a 3.13% increase in the past 24 hours. However, the price has broken below a critical demand zone at $0.45, signaling continued bearish pressure. 

Additionally, the descending wedge pattern suggests that further downside is possible unless buyers reclaim higher levels. Therefore, if POL fails to hold above $0.40, a deeper correction could follow.

Source: TradingView

In/Out of the money: Are holders facing more losses?

On-chain data reveals that 93.51% of POL holders remain out of the money, meaning they purchased at higher prices. Additionally, only 4.58% of addresses are in profit, highlighting weak investor confidence. 

With heavy resistance at $0.43 – $0.45, bulls must break through this range to shift momentum. However, failure to do so could lead to more selling pressure and deeper losses.

Source: IntoTheBlock

Address stats: Is network activity declining?

The number of new addresses has fallen 58.67%, while active addresses dropped 44.34% over the past week. This significant decline suggests weakening user engagement, which is often bearish for price action.

Additionally, lower participation could mean reduced demand for POL, making recovery harder. Therefore, if network activity does not rebound, POL could struggle to gain upward momentum.

Source: IntoTheBlock

Transaction stats: Are large investors still buying?

Polygon transactions between $100K and $1M surged 620%, indicating increased institutional movement. However, transactions under $100 have dropped sharply, showing that retail interest is fading.

Additionally, retail traders are key in sustaining rallies, and their absence could delay any recovery. Without strong retail participation, POL may continue facing downward pressure.

Source: IntoTheBlock

Read Polygon’s [POL] Price Prediction 2025-26

Can POL recover or will the decline continue?

Polygon continues to struggle with whale exits, declining network activity and reduced retail participation.

Additionally, unless the coin reclaims $0.45, bullish momentum will remain limited. Therefore, with persistent selling pressure and weak demand, a deeper correction is more likely.