Polygon (POL), the scaling solution for Ethereum, has been on a strong upward trajectory recently, with its price increasing by nearly 52% over the last month. However, the recent transfer of 2 million POL tokens, worth approximately $915,000, from Alameda Research to Binance has raised questions about its potential impact on the token’s price. Despite concerns over a possible pullback, Polygon’s market sentiment remains strong, with indicators suggesting continued bullish momentum in the short term.

Polygon’s Impressive Growth

Polygon has experienced a significant surge over the past few weeks. From a local low of $0.35, the token has steadily climbed, recently reaching $0.5406—a 17.59% increase in just 24 hours. This upward movement has extended across both weekly and monthly charts, with Polygon’s price rising by 34.38% and 51.88%, respectively. This growth has prompted long-term holders to take profits, with Alameda Research being one of the most notable sellers.

Alameda Research’s Massive Transfer to Binance

According to data from Arkham Intelligence, Alameda Research recently moved 2 million POL tokens to Binance, a transaction valued at about $915,000. This is part of a broader selling trend by the firm, which has transferred a total of 4.5 million tokens (worth nearly $2 million) over the past week. Such large transfers typically raise concerns about selling pressure, potentially causing price declines if the market struggles to absorb the additional supply.

Historically, when large holders—referred to as “whales”—sell their positions, it can trigger price corrections, especially if there is insufficient buying demand to balance the increased supply. As such, the question arises: will this wave of selling pressure from Alameda negatively impact Polygon’s price?

Bullish Sentiment Still Prevails

Despite the significant token transfers, Polygon is still experiencing positive sentiment in the market. The token’s price has continued to rise, suggesting that the market is absorbing the selling pressure effectively. One key indicator of this is the rise in Polygon’s Futures Open Interest, which recently surged to a new all-time high (ATH) of $106.9 million. This increase reflects growing demand for the token, with more investors taking long positions in the futures market, which typically signals a bullish outlook.

Moreover, Polygon’s Stock-to-Flow (SFR) ratio has risen to 1.24, up from oversupply levels. A rising SFR indicates increasing scarcity, which tends to drive prices higher as supply decreases while demand continues to climb. This suggests that even as large tokens are moved into exchanges, the overall market is still leaning bullish, which could help absorb the selling pressure.

MVRV Ratio Suggests More Gains Ahead

Polygon’s MVRV (Market Value to Realized Value) Long/Short Difference, which measures the profitability of long-term holders versus short-term traders, has also increased. Over the past week, it surged from -2.37 to -0.56. This indicates that long holders are currently in profit, which supports the idea of sustained bullish sentiment and potential for further price increases.

In fact, despite the recent transfers, analysts are forecasting that Polygon could continue its ascent. With strong momentum still in place, the token could rise to around $0.57 in the short term. In the event that the selling pressure from Alameda’s transfers causes a slight dip, support is expected around $0.47.

Conclusion: Will Alameda’s Transfers Affect Polygon?

While Alameda Research’s massive transfer of 2 million POL tokens to Binance has raised concerns about a potential pullback, Polygon’s overall market sentiment remains bullish. Indicators like the rising Futures Open Interest, Stock-to-Flow ratio, and the MVRV Long/Short Difference suggest that Polygon’s price could continue to climb despite the large token movement.

If the bullish trend continues, Polygon could see further gains, potentially reaching $0.57 in the near term. However, should the market fail to absorb the selling pressure, a correction down to $0.47 remains a possibility. As always, traders and investors should remain vigilant and monitor key market indicators for any signs of change.