Polygon network whale transactions surge, MATIC price may pull back in the short term?
The recent surge in whale transactions on the Polygon network has raised market concerns about the price trend of MATIC. Although institutional investors have shown interest in MATIC, analysts believe that the token price may fall below $0.47 in the short term.
Reasons behind the surge in whale transactions
According to IntoTheBlock, the volume of whale transactions worth more than $100,000 on the Polygon network has increased by more than 1,000% in the past few days, totaling more than $100 million. This shows that institutional investors have a strong interest in the MATIC token and may drive its price up in the future.
MATIC price may pull back in the short term
However, despite the surge in whale transactions, the MATIC price has fallen by 4.19% to $0.49 in the past 24 hours. This may be due to profit-taking in the market, after the MATIC price climbed to $0.52 on the chart.
Analysts pointed out that MATIC's 30-day MVRV ratio is -8.32%, which means that if the token holder sells at the current price, it will suffer a loss of 8.32%. This indicates that MATIC may be oversold and at risk of a pullback.
In addition, the IOMAP indicator shows that 6,250 addresses bought 42.67 million MATIC at an average price of $0.51, which means that there is strong resistance in this price range. Once the price rebounds, the holders of these addresses may choose to take profits, causing the price of MATIC to fall.
Potential support for the decline in MATIC prices
If the price of MATIC pulls back, the next decline may fall to $0.48 or even lower. 1,060 addresses holding 58.97 million MATIC near $0.49 may also constitute a support level.
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