Key Insights
- Polygon (POL) price rallied 40% from the Feb. 6 bottom, but whales reduced holdings by 210 million tokens.
- Hidden bearish divergence formed as price tested the same highs while RSI made a higher high, signaling weakness.
- Chaikin Money Flow crossed above zero, showing institutions accumulating while whales distribute, creating a standoff.
Polygon (POL) price bounced 40% from the Feb. 6 bottom. The recovery looked strong at first. But something strange happened underneath. Whales started selling. They dumped 210 million tokens while the price climbed higher.
Retail investors stopped selling completely. Exchange inflows fell 95% in just days. Yet the rally still couldn’t push through key resistance. Now, POL price sits at a crossroads where the next move probably breaks one way hard.
Whales Dumped 210M During 40% Polygon Price Rally
The numbers tell a clear story.
Whale wallets held 8.75 billion POL tokens on Feb. 14. By Feb. 25, they held just 8.54 billion. That’s 210 million tokens gone during a rally.
This group usually accumulates on weakness and distributes on strength. These whales did exactly that.
Polygon price dropped 55% between Jan. 10 and Feb. 6. All the early January gains got wiped out for POL price. When the bounce started from that February low, whales possibly used the strength to exit positions.
This creates a problem for bulls. If the biggest holders are selling into rallies, who’s buying? The answer appears to be smaller retail holders and possibly some institutions.
But retail already exhausted most selling pressure. Exchange inflows collapsed from 470,000 tokens to just 23,000 tokens. That’s a 95% drop, showing retail finished panic selling.
Exchange outflows dropped, too, though. Nobody’s moving. Everyone’s watching.
Polygon RSI Hits Higher High but Price Stalls
Charts between Feb. 14 and Feb. 24 painted an interesting picture.
Polygon price tested the same resistance level twice, creating a double top. But the Relative Strength Index made a higher high during that second test.
This mismatch creates hidden bearish divergence. Price can’t break higher, but momentum indicators show improvement. That usually means the rally is running out of steam.
Buyers are trying harder, as shown by rising RSI. But they can’t actually push the price through the resistance. Sellers meet every attempt with supply.
For Polygon price, this holds key because the February bounce already traveled 40%. That’s solid. But if it can’t break through resistance despite improving momentum, the path of least resistance might change back down. Combined with whale distribution, it creates a setup where any catalyst could tip things.
Institutions Accumulate as Key Levels Decide Polygon Price
Chaikin Money Flow crossed above the zero line recently. Above zero means accumulation. CMF crossed positive exactly like it did earlier in the period before a massive rally. So institutions or large capital might be seeing value here.
They’re accumulating while whales distribute.
Two different types of smart money disagreeing can create tension between opposing forces.
The $0.14 level decides everything. A clean break above opens the door to $0.18 even. That would represent another POL price rally and complete the recovery from the crash. Bulls would regain control.
But if Polygon price can’t break resistance and instead falls below $0.10, the setup turns bearish, really fast.
Losing that support exposes $0.08 as the next target. That’s another 20% drop. It would trap bulls who bought the bounce.
The standoff between whales and institutions creates this binary outcome. Retail, which stayed on the sidelines, might get rewarded for patience or miss the Polygon price move entirely. The next big move probably happens soon, given how tight the range has become and how clear the levels are.