ambcrypto.com
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21Shares has been aggressively accumulating Polygon [$POL] over the past month. On the 28th of October, 21Shares withdrew 45.7 million $POL worth $4.08 million from Coinbase.
Cumulatively, the firm has withdrawn $11 million worth of $POL over the past 30 days.
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For the uninitiated, 21Shares purchases are often positive signals for $POL since these tokens are then staked. This tends to remove supply from exchanges, thus creating a net institutional demand for $POL.
Usually, the reason for the 21Shares withdrawal is tied to their Polygon ETP. When investors buy ETP shares, 21Shares buys more $POL to ensure the product is fully backed.
For now, however, 21Shares Polygon ETP has experienced severe underperformance, falling 19% despite reports that $POL bought in the last 30 days. Overall, the ETP is down 94% since its inception.
Polygon has traded within a multi-month descending channel since facing rejection at $0.12 in September. However, over the past three days, altcoins have shown some relative bullish strength.
After falling to a low of $0.087 three days ago, it has closed with higher highs, reclaiming $0.09 and rising to a local high of $0.093.
At press time, Polygon was trading around $0.092, up 2.6% on the daily charts. Polygon has shown recent bullish strength primarily driven by renewed demand.
In addition to 21Shares purchases, buyers have dominated the market for four consecutive days, per the Spot Buy/Sell volume.
This period has coincided with better price action. Over the past 24 hours, for example, the altcoin saw 30 million in buy volume with a delta of 3 million. A positive delta suggests that more buy orders were executed over the said period.
With some demand returning, the upside momentum has strengthened significantly. For starters, the altcoin’s Relative Strength Index (RSI) formed a bullish crossover and rose to 41.
With the RSI forming a bullish move, it shows buyers attempting to regain control. However, the index remains within the bearish zone, suggesting that sellers maintain market control.
Likewise, the MACD formed a bullish crossover but remains within the negative zone. The two indicators suggest improving market conditions with buyers in a rush to retake the market, but bears remain active.
Under these circumstances, Polygon faces immediate outcomes. First, if buyers continue with the current pace, the market will most likely see a sustained uptrend reversal.
In doing so, $POL will reclaim $0.097 and eye a move above $0.1. However, if bears maintain control and demand remains insufficient to overwhelm them, Polygon will drop below $0.09 again.
