Polygon (MATIC) price is facing bearish pressure as investors lose confidence.
Whale investors have sold approximately 28 million MATIC, worth over $14 million.
MATIC, currently trading at $0.55, is holding above the crucial support level of $0.53.
Polygon’s (MATIC) price appears to be taking a bearish trajectory as the altcoin struggles to maintain the support of its investors.
From whales attempting to sell their holdings to the increasing volume of losses, MATIC’s outlook is becoming increasingly pessimistic.
Polygon Investors’ Confidence Erodes
Source: Santiment
As the MATIC price continues its downward trend, it is creating an increasingly bearish environment for investors. Evidence of this sentiment can be observed through the recent spikes in realized losses, indicating a significant number of investors are selling their assets at a loss.
This trend suggests that a selling sentiment is prevalent in the market, with many investors likely reacting to current market conditions by liquidating their holdings.
The practical manifestation of this theory can be seen in the way whales are moving their MATIC holdings. Over the last four days, whale investors have sold approximately 28 million MATIC, worth more than $14 million, to exchanges.
Addresses holding between 1 million and 10 million MATIC have been offloading their tokens, reducing their holdings from 944 million to 891 million at the time of writing.
This development is particularly concerning, as whale investors typically have a significant influence on the price of an asset.
As these whales continue to sell, the price of MATIC could experience further declines, exacerbating the losses already borne by MATIC holders.
Given the aforementioned factors and the increasing bearish sentiment, it appears likely that MATIC could break below this support level once again.