The coin Polygon (MATIC) has sparked mixed signals among the cryptocurrency markets, amidst the recent downturn in the market. In the week following the Shapella upgrade, bulls and whales have been seen accumulating MATIC coins as the price has risen by about 6%. But, data from Santiment's on-chain has raised questions as to whether the MATIC price can remain stable amid the current market outlook.
Whales, especially those holding between 100,000 and 100 million MATIC coins, had bought around 50 million coins worth of MATIC during the week leading upto the Ethereum network upgrade. In spite of the purchasing, the whales have gone back to a more neutral stance, resulting in stagnation of the MATIC price. Recent data from Glassnode also points towards a 4% spike in MATIC exchange balance, signifying a large number of MATIC coins being transferred to exchanges. This could indicate participants are looking to sell their long positions or grab short-term trading opportunities, which could result in a downward price pressure of the MATIC coin in the near future.
Keen-eyed investors might be wary of the fact that MATIC's close adherence to the broader crypto downturn could prove to be a major setback. However, IntoTheBlock's Global In/Out of The Money suggests that the MATIC coin has the potential to hit a buy-wall at around $0.95, should the price fall below the $1.10 support zone. Beyond that, the 57,000 addresses that have are holding 669,000 coins might help boost the MATIC price in order to avoid a major price correction.
Should the bulls remain firm, the coin might be able to breach the $1.18 resistance zone and continue to rally up towards the $1.29 goal. But, even if that happens, investors should be wary of the 15,000 whale addresses holding 578 million coins that might be looking to sell, thus causing volatility in the MATIC price. To sum up, the current market outlook suggests that MATIC coin may follow the broader crypto market sentiment, at least in the short-term. The bullish sentiment around MATIC should be monitored carefully as the prices could correct themselves in the near future.
Daniel Jones
- 2023-04-19
Mixed Signals for Polygon's MATIC Coin Amidst Crypto Market Downturn
The coin Polygon (MATIC) has sparked mixed signals among the cryptocurrency markets, amidst the recent downturn in the market. In the week following the Shapella upgrade, bulls and whales have been seen accumulating MATIC coins as the price has risen by about 6%. Nevertheless, data from on-chain and Glassnode suggest that bearish pressure could be put on MATIC coin in the near future.
