Polygon plunges 9%, losses key support: Can POL still hold $0.09?

The post Polygon plunges 9%, losses key support: Can POL still hold $0.09? appeared on BitcoinEthereumNews.com.

The broader market pressure has hit Polygon [POL] the hardest. As a result, the altcoin experienced strong downward pressure, breaching the $0.1 support and falling to a low of $0.093. As of this writing, POL was trading around $0.094, down 8.9% on the daily charts. However, altcoin’s trading volume climbed 54.8% to $87.6 million. The rising volume during a price pullback often suggested increased activity on the sell side as investors reduce their exposure. Polygon is under intense selling pressure As POL continued to slip, investors across the market have continued to exit their positions. Firstly, on the spot side, the Spot netflow turned positive after early dropping. As of press time, Spot netflow was around $849k. A positive netflow suggested that more funds entered exchanges. Source: CoinGlass Often when holders cash out during a downtrend, it reflects fear and lack of confidence. Often, increased profit realization during a period of extended weakness has preceded more losses. Derivatives are even more bearish On the derivatives market, sellers are even more aggressive. According to Coinalyze data, Polygon Perpetuals recorded 46.79 million in sell volume compared to 43.2 million in buy volume. Source: Coinalyze At the same time, delta dropped to the negative zone, falling to -9.8 million, while net buying was also negative at -98 million. With both the Delta and net buying holding negative, it suggests that most traders closed their Perps positions.  On the Futures side, the same pattern was observed. Polygon saw $23.6 million in Futures outflows compared to $22.1 million in Futures inflows.  Source: CoinGlass The Netflow dropped to -$1.55 million, a trend that has held over the past five days. The period of higher outflows has coincided with price decline. What’s next? Driven by intense selling pressure, Polygon’s downside momentum has strengthened significantly. For that reason, the…

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