Alameda Dumps Millions in Polygon (POL) Tokens: Is a Sell-Off Coming?
Mustafa Mulla23 Nov 20242 min read
Alameda Research bankrupt firm who have earlier filed for Chapter 11 bankruptcy protection alongside FTX is making waves again in the crypto community. Just as Polygon (POL) surged by 35% this week, the troubled company has transferred millions of POL tokens.
This sudden move has raised questions, is this a sign of an upcoming sell-off and profit-taking?
Alameda Move 2 Million POL Token
On November 23 Alamade Research, one of Polygon’s biggest investors transferred 2 million POL tokens, valued at approximately $927,000, to Binance, a leading centralized exchange.
Perhaps, this isn’t the first time Alameda has made such moves — over the last few days, they’ve moved a total of 4.5 million POL tokens.
A History of Market Manipulation?
Alameda’s actions come at a time when POL’s price is seeing a significant boost, especially since Alameda has a history of conducting token dumps that can cause significant fluctuations in the market.
However, this recent transfer follows a similar pattern seen in the past when Alameda moved 2 million WLD tokens, worth approximately $3.46 million, to Binance. The purpose of these transfers is believed to be tied to their efforts to repay creditors.
With the recent price surge, some fear that the transfers might be an indication that Alameda is preparing to sell off its holdings, potentially leading to a price correction if other large holders, or “whales,” follow suit.
Polygon’s Price Surge: Can It Hold On?
Despite these large transfers, Polygon’s price has been climbing. The POL token has been trading above $0.54, up 19% in just 24 hours. This week, the price has jumped from $0.34 to $0.54, mainly due to news that SEC Chair Gary Gensler is stepping down. This news has brought fresh hope to the market, and POL has been one of the winners.
Technical Outlook: Bullish or Bearish?
Looking ahead, the technical charts show that the price could keep going up. If POL breaks through the $0.59 resistance level, it could reach as high as $0.73 and further to $1.2.
However, if it struggles to break that barrier, there’s a chance it could drop back down to $0.48 before starting a fresh rally.
The future of Polygon, and the broader crypto market, remains uncertain.
