The data shows that an altcoin whale moved approximately $7.8 million worth of Polygon (MATIC) to crypto exchange Binance. This is also something that could indicate a bearish bias for the crypto price. Here are the details and expectations…
Altcoin whale transfers 9 million MATIC to the stock market
According to data from crypto transaction monitoring service Whale Alert, a large MATIC transfer was detected today. This transaction involved the movement of 9 million MATIC on the Ethereum Blockchain, worth more than $7.8 million at the time of the transfer. The same stack of coins now equates to around $7.6 million, as the price of Polygon has dropped quite a bit since then. Such large transactions are often a sign of whale activity and, depending on the purpose behind them, can have noticeable effects on the market.
As you can see above, the sending address for this Polygon transaction was an unknown address. Such addresses usually belong to personal wallets or at least not linked to any known central platform. In this case, the target of the transfer was a wallet associated with the crypto exchange Binance, which means it was an exchange entry transaction. One of the main reasons traders transfer their MATIC (or any other cryptocurrency) to exchanges is for sale purposes. Therefore, entries can have a negative impact on the price of the coin.
Big inflows like this one from whales can be a sign that these big holders are dumping and thus may be bearish, especially for crypto. However, at the moment it is unclear whether this whale is really prepared to sell with this transfer. Perhaps it will only establish a position in the futures market.
Exciting developments in the MATIC ecosystem
Various assets of the crypto market have been heavily hit by the recent crash, and MATIC is no exception, whose price has lost over 40 percent in the last two weeks triggered by the fall of FTX. However, the Polygon network’s recent partnership with popular crypto exchange Kraken has brought optimistic hopes to investors, with the goal of trading above $1 soon. Unfortunately, bullish hopes seem to be in vain as whale investors wake up to cash out large holdings to bring significant selling pressure.
Over the past few days, the Polygon network has witnessed a notable backlog following the recent market crash due to increased MATIC accumulation after a few positive news that pushed the asset to trade in the slightly bullish zone. MATIC’s whale owners control a significant part in driving price volatility. Because the massive selling pressure from them creates an extreme fear zone for Polygon with a pump and dump game that could trigger a downtrend towards the lower levels.
What’s next for MATIC?
SwalloPremium, a professional crypto analyst, has predicted that MATIC is ready for more bearish divergences, which could be worse than the current market turmoil. He predicts that a break below the $0.77 support level could take MATIC’s price into the $0.58-0.62 bearish consolidation range in the next few days.
If MATIC sustains its price above the support level, it may aim to retest a strong resistance at $1.01, and from this resistance, sellers can open a short position, lowering the asset to the initial support level at $0.77. Looking at the daily price chart, MATIC gained significant traction after gaining support at $0.8. Polygon is currently trading at $0.85. It reveals that MATIC may test the resistance level near $0.9 at the EMA-50 trendline as the RSI-14 indicator is constantly pushing upwards at 47 due to the positive market sentiment.
If MATIC rises above $1, it could provide a clear path to the upper limit of the Bollinger band at $1.2. However, a massive liquidation from whale holders could cause MATIC to trade below the Bollinger band’s lower limit of $0.6, as the MACD line shows no signs of recovery and continues to trade in negative territory below the signal line.
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