The recent sharp decline in the value of Polygon (MATIC) has caused a new wave of volatility in the crypto market, leaving investors uncertain of its future price trends. Although the token has recovered slightly, MATIC investors are still scrambling to find a safe haven amidst the market’s uncertainty. Latin America’s biggest investment bank launched a stablecoin on Polygon (MATIC); however, it is yet to be seen if this will aid the struggling coin.
Whales Deposit Over $100 Million MATIC Tokens
Whales were prompted to heavily accumulate MATIC tokens as the price dipped to its weekly support level recently. Recent blockchain data indicates that over the past few hours, approximately $109 million worth of Polygon ($MATIC) has been transferred to wallets owned by major cryptocurrency exchange Binance. This suggests that the cryptocurrency’s price may face significant selling pressure.
A transfer of 40 million MATIC tokens, valued at approximately $43.7 million at the time of the transfer, was the first to occur. Given the significant amount involved, it is likely that a whale entity may have initiated it. Moreover, many assume that the whale is selling holdings since the funds were transferred from self-custody to an exchange.
Following the first transfer, a second transfer took place, involving 30 million MATIC tokens valued at $32.8 million, further signalling a significant sell-off. Additionally, a third transfer of the exact same amount of MATIC was moved to the exchange, but with no address overlap between the previous transfers, indicating the involvement of distinct whale entities or funds serving various purposes.
MATIC Price May Drop Despite Strong Developments
Despite Polygon’s zkEVM beta version and BTG Pactual’s launch of stablecoin on the Polygon network, the MATIC token continues to experience decreased investor interest.
Bitcoin’s recent breakout above $30K has sparked fresh excitement in the altcoin market, pushing MATIC price to the North. Despite attempts by sellers to push Polygon’s MATIC below the support line of $1.08, the bulls managed to maintain their position, indicating potential buying opportunities at lower levels.
The MATIC bulls will aim to surpass the 20-day EMA at $1.11, which may lead to a surge in the token’s price toward the symmetrical triangle’s resistance line. A successful break and close above the triangle may indicate the bulls’ dominance over the bears, paving the way for a potential rally towards $1.35.
As of writing, MATIC’s price trades at $1.12, gaining over 2% in the last 24 hours. Analyzing the daily price chart, MATIC’s price may soon witness a downward correction. If MATIC fails to test its resistance at $1.14, it may decline below the 23.6% Fib level and take support at $1.1.