According to on-chain analysis data released today by Blockchain service Lookonchain, a Polygon whale moved considerable funds in this network’s native token MATIC. The funds were sent to trading venues, thus making the price of the token drop by nearly 6%. The unknown whale wallet transferred $10.43 million in MATIC to another unknown wallet in the Binance exchange.
Two weeks ago, on January 16, the same Polygon whale wallet transferred a similar amount in MATIC to an unknown wallet to Binance, thus causing the coin’s value to plunge by 8%.
Is The Price Of MATIC In Danger?
In digital assets, the term “whale” indicates ownership of crypto coins in huge quantities. Although crypto whale transfers don’t guarantee immediate downside price action, they can be a good indicator of what might occur to the value of specific cryptocurrencies in the future.
The MATIC whale’s transfer from a personal wallet to an exchange suggests the investor is preparing to liquidate the assets. Polygon whales were not the only ones who transferred significant funds this month. Whale Alert, a Blockchain platform that tracks the activities of crypto whales, on January 20, identified whales that suddenly moved over $363 million in Bitcoin and XRP after BTC surged its value to the $21,000 level.
The 2022 bear market continues despite the spike in positive market sentiment. Despite the bullish trend since the beginning of 2023, cryptocurrencies could still see price consolidation and fresh crashes to support levels.
MATIC Price Action
At the time of writing, Polygon was trading at $1.1, down 5.11%, with a trading volume of $530 million in the last 24 hours. With a market cap of $9 billion today, MATIC was ranked the 10th largest cryptocurrency, according to Coinmarketcap.
The MATIC chart shows that the RSI is 63.76, meaning MATIC is in the bull territory.
However, the Bollinger band shows that the crypto price is mean reverting, which signals a weakening bullish trend. This indicates MATIC is in the consolidation phase, meaning the token lacks buying interest. The outer bands appear to try to widen as the price moves, showing that volatility may increase as the price seems to have the potential to move down strongly.
As per the chart, if MATIC rallies in the next few days, it may soar its value to the resistance level of $1.2. However, if the crypto retreats its price, it may rest at the support level of $0.7, as shown in the chart.
Featured image from Unsplash, chart from TradingView