MATIC faces a downturn with a 5% drop, reflecting broader market trends
Whales are increasing MATIC holdings, suggesting potential future value increase
Technical indicators show strong support at $0.38 and resistance at $0.45
Polygon (MATIC) has recently faced a downturn, reflecting the broader trend of declines across the cryptocurrency market. The altcoin hit an all-time high of $2.92 on December 27, 2021, but has since experienced a significant correction. Over the past week, MATIC has dropped by 5%, largely due to overall market volatility.
Market Activity and Whale Behavior
Despite this downturn, Santiment data indicates that cryptocurrency whales are increasing their MATIC holdings. This trend suggests that these large investors may be preparing for a potential rebound or value increase in the future.
Analysis of recent transactions shows heightened activity during price dips. This behavior suggests that major holders are strategically accumulating MATIC rather than engaging in panic selling.
Recent trends reveal a strong correlation between Polygon’s network growth and its token price. A decline in network activity has been mirrored by a drop in MATIC’s market price. This correlation underscores how user engagement and network transactions can impact token valuation.
Current Market Conditions and Technical Indicators
According to IntoTheBlock, a vast majority of MATIC holders are currently facing losses. Specifically, 98.44% of addresses are out of the money, having purchased MATIC at higher prices than its current value.
Only 1.05% of investors are in the money, buying at lower prices and thus showing a profit potential. This data highlights the high volatility and speculative nature of the cryptocurrency market.
In the past 24 hours, MATIC has seen notable price fluctuations. As of the latest update, MATIC was trading at $0.4057 during European trading hours, marking a slight decrease of 0.22% from the previous day. The trading session saw MATIC’s price range between $0.4074 and $0.393.
If the current downward trend continues, MATIC might test a support level at $0.38. Further selling pressure could push the price down to $0.35.
On the flip side, a rise above the $0.42 resistance could signal a bullish reversal. This move might push MATIC toward a critical resistance level of $0.45. With sustained positive momentum, the price could potentially surpass $0.55.
The post Polygon (MATIC) Faces Market Headwinds: Whale Accumulation Amid Downturn appeared first on Crypto News Land.