Polygon [POL] encountered renewed supply pressure as FalconX transferred 14 million tokens valued at $1.29 million into Binance during an ongoing price correction. The deposit marked FalconX's largest POL transfer to the exchange this week, raising concerns about available supply among traders.
At the time of reporting, Polygon was stabilizing around $0.09349 after retreating from its late-August peak near $0.125. The transfer arrived as buyers worked to stabilize the broader price structure. While the deposit did not confirm a sale, it introduced additional supply risk as POL traded around a key demand region.
Trader Positioning Remains Bullish
Despite the supply concerns, derivatives data showed a different picture. Binance top traders maintained substantial long exposure, with long positions accounting for approximately 63.21% against 36.79% for short positions, reflecting a Long/Short Ratio of 1.72.
Top traders continued positioning for a price recovery as POL consolidated around its demand area. However, heavy long positioning increases vulnerability if key support fails to hold, as a sharper price decline could pressure leveraged bulls and trigger forced position closures.
Liquidation Activity Favors Shorts
Recent liquidation activity demonstrated the impact of downside moves on bullish traders. Long liquidations reached approximately $2.13K, exceeding short liquidations at $378.97—more than five times the forced closures on the short side. OKX contributed roughly $2.04K of the long liquidations, while Bybit recorded approximately $95.19, and Binance reported zero long liquidations.
Overall liquidation totals remained modest compared to earlier spikes. POL did not experience a broader leverage flush despite the increased pressure on bullish positions, though further price contraction could expose additional longs.
Technical Structure and Price Levels
POL traded around $0.09320 after pulling back into its daily demand zone surrounding $0.08934, where buyers previously countered the late-August decline. The asset repeatedly challenged the $0.09846 supply zone across six consecutive sessions without a successful breakout before dropping toward $0.090.
The second defense of the demand zone created a possible double-bottom rebound structure, with $0.09846 acting as key resistance. The RSI reversed from 47.87 toward 49.08, aligning with a green candle emerging from the demand zone.
A break above $0.09846 would suggest recovery potential toward $0.10691, with sustained buying potentially opening a path to $0.12000. Conversely, another rejection at $0.09846 would keep POL range-bound, while losing $0.08934 support would invalidate the developing double-bottom setup.
