[Polygon (MATIC) whale selling signal indicates consolidation is coming]
MATIC is currently trading below $0.7, with investor confidence waning, which has been particularly evident in the massive whale selling over the past few days. In one week, addresses holding between 1 million and 10 million MATIC have sold more than 21 million MATIC, amounting to $14.7 million, showing that holders of large funds are cutting their losses.
Given that whales represent a significant proportion of supply, their actions directly impact price movements. MATIC supply has fallen to a three-month low and prices may be under downward pressure. In addition, the sharp drop in trading volume shows that not only large players, but also retail investors are waiting to wait for the market to become more profitable before participating. MATIC’s average trading volume has dropped from $77 million to $21 million in recent weeks, which could be another trigger for the price drop.
MATIC price has fluctuated between $0.65 and $0.75 over the past month, with these levels acting as support and resistance multiple times in the past. Despite multiple attempts to break out, MATIC failed to break out of this consolidation range. Based on current market conditions, the coin price has the potential to drop to $0.65; if the bearish trend intensifies, this support could be breached and slide further to $0.6.
However, MATIC could rebound if optimism among Polygon investors returns and there is a revival in online activity. A break above the $0.75 resistance would invalidate the bearish view and could push the coin to $0.8.