According to on-chain analysis data released today by the Blockchain service Lookonchain, Polygon’s whale transferred a change of funds in the native token of this network MATIC. The funds are sent to the trading board, so the price of the token drops almost 6%. At an unknown whale wallet transferred $10.43 million in MATIC to another unknown wallet on the Binance exchange.
Two weeks ago, on January 16, the Polygon whale wallet transferred the same amount in MATIC to an unknown wallet to Binance, thus causing the coin’s value to drop by 8%.
Is MATIC Price In Danger?
In digital assets, the term “whale” refers to the ownership of large amounts of crypto coins. Although crypto whale transfers are not guarantee direct downside price action, they can be a good indicator of what can happen to the value of certain cryptocurrencies in the future.
The transfer of MATIC whales from personal wallets to exchanges shows that investors are ready to liquidate their assets. Polygon whales aren’t the only ones transferring significant funds this month. Whale Alert, a Blockchain platform that tracks the activities of crypto whales, on January 20, recognized The whale that suddenly moved over $363 million in Bitcoin and XRP after BTC surged in value to the level of $21,000.
2022 bear market continues despite positive market sentiment. Despite the bullish trend since the beginning of 2023, the cryptocurrency may still see price consolidation and a new crash to support levels.
MATIC Price Action
At the time of writing, Polygon is trading at $1.1, down 5.11%, with a trading volume of $530 million in the last 24 hours. With a current market capitalization of $9 billion, MATIC ranks 10thTh The largest cryptocurrency, according to Coinmarketcap.
The MATIC chart shows that the RSI 63.76, which means MATIC is in bull territory.
However, the Bollinger bands indicate that the price of crypto means a return, which signals a weakening bullish trend. This shows MATIC is in a consolidation phase, which means that the token has no buying interest. The outer band appears to be trying to widen as the price moves, indicating that volatility may increase as the price has the potential to drop significantly.
According to the chart, if MATIC rallies in the next few days, it may rise to the resistance level of $1.2. However, if the crypto pulls back in price, it could be at the $0.7 support level, as shown in the chart.
Featured images from Unsplash, charts from TradingView