Polygon [POL] faces a $1.29M FalconX deposit – Can $0.08934 hold?
POL defended its demand zone as reversing RSI supported a possible double-bottom rebound toward $0.09846.
Polygon [POL] encountered renewed supply pressure as FalconX moved 14 million tokens valued at $1.29 million into the Binance exchange amid its ongoing price correction.
This transaction marked FalconX’s largest POL deposit to Binance this week, hence raising fresh exchange-side supply concerns among traders.
At the time of this writing, Polygon was trying to stabilize around $0.09349 after pulling back rapidly from its late-August peak around the $0.125 zone.
The transfer therefore arrived at a time when bulls were already working to stabilize the broader price structure.
Moving tokens into Binance introduced readily available exchange supply, thus creating potential selling pressure.
The transaction itself however did not confirm that FalconX sold those tokens, but rather introduced additional supply risk as POL sat around a key demand region.
Buyers would need to absorb any incoming selling pressure to protect the establishing recovery structure.
Top traders keep their bullish conviction
The derivatives positioning on the other hand provided a different outlook. According to CoinGlass, Binance top traders maintained substantial long exposure despite FalconX’s exchange deposit.
Specifically, the long positions accounted for around 63.21%, against 36.79% for short positions. The resulting 1.72 Long/Short Ratio reflected a clear support for bullish positioning.
Interestingly, the conviction persisted while POL consolidated around its demand area following the late August retracement. The top traders therefore continued positioning for a price recovery rather than routing for a further downside.
However, the heavy long positioning also increases vulnerability risks in case the key support fails to hold. This is because a sharper price decline could pressure the leveraged bulls and amplify forced position closures.
Therefore it is significant for POL to defend its current price structure to sustain the top traders’ bullish exposure.
Long liquidations expose bullish traders
The recent liquidation activity already showed how downside moves affected the top traders positioned for a recovery.
Reportedly, the long liquidations reached roughly $2.13K, exceeding the short liquidations at only $378.97. This means that the longs suffered more than five times the forced closures experienced by the shorts.
Specifically, the OKX exchange contributed roughly $2.04K of those long liquidations, while Bybit recorded around $95.19. All the recorded $378.97 short liquidations happened on Binance, which on the hand recorded zero long liquidations.
Besides, the overall liquidation totals remained modest compared to the several earlier liquidation spikes visible on the chart. Notably, POL did not experience a broader leverage flush despite greater pressure on the bullish positions.
However, further price contraction could expose additional longs, particularly if POL fails to preserve its current demand zone.
POL’s double bottom puts $0.09846 in focus
At the time of analysis, Polygon [POL] traded around $0.09320 after pulling back directly into its newly established daily demand zone.
Notably, the zone surrounds the $0.08934 support, where buyers previously countered the late-August price decline.
Before this retest, POL repeatedly challenged the $0.09846 supply zone across six consecutive sessions without establishing any successful breakout. Subsequently, the price then dropped towards the $0.090 area, attempting a rebound within the demand zone.
Notably, this second defense has created a possible double-bottom rebound structure, with $0.09846 acting as its key resistance level.
Interestingly, the RSI has reversed from 47.87 toward 49.08, aligning with the latest green candle emerging from the demand zone.
A successful break above the $0.09846 level would validate stronger recovery potential toward the $0.10691 level.
Further, sustained buying beyond that resistance level could open a path to $0.12000, completing the double-bottom rebound.
However, another rejection at the $0.09846 resistance would keep POL range-bound, while losing the $0.08934 support would invalidate the developing double-bottom setup.
Final thoughts
- FalconX’s fresh supply pressured Polygon, while top traders maintained strong long exposure.
- POL defends $0.08934 as reversing RSI strengthens the developing double-bottom rebound.
