The post Potential Further Decline for Polygon (POL) Amid Significant Liquidity Outflows and Bearish Market Sentiment appeared on BitcoinEthereumNews.com.

The recent volatility surrounding Polygon (POL) has raised alarms as liquidity continues to drain from the market, signaling potential further price declines. As a result of this downturn, POL’s trading landscape has shifted dramatically, with over 99% of current holders facing losses and prompting concerns about sustained bearish momentum. According to COINOTAG, “with 99.73% of POL holders at a loss, the market sentiment is heavily skewed towards fear and potential selling pressure.” This article explores the recent liquidity crisis in Polygon (POL) and its implications for current holders, highlighting risk factors and market trends. The Impact of Significant Liquidity Outflows on POL’s Price Stability Over the last 24 hours, Polygon has witnessed a stark negative netflow of liquidity, a clear indicator of bearish sentiment among investors. This outflow, amounting to over $13.2 million, has put tremendous pressure on the price stability of POL, suggesting that a bearish market is in motion. COINOTAG’s analysis emphasizes that 99.73% of holders are now “out of the money”, a precarious situation that may further fuel a wave of selling. As more investors opt to withdraw their stakes, the reasons behind this sentiment are crucial to understanding the potential for further downturns. Source: Artemis Technical Analysis: POL’s Chart Signals Bearish Trends Ahead From a technical standpoint, POL’s current trading patterns reveal a concerning trend. The asset has been forming lower highs and lows within a descending channel, and a breakdown from the support level at $0.278 could precipitate a further decline. Market analysts note that if POL hits the liquidity zone at $0.243, it risks establishing a new low not seen since February. A sustained downturn could trigger more aggressive sell-offs from investors concerned about locking in losses as the trading sessions progress. Source: TradingView Derivatives Market Signals Intensifying Selling Pressure The interplay between the…

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Filed under: News - @ February 25, 2025 8:25 am