Polygon (MATIC) Overview
Polygon (MATIC), a prominent layer-two scaling solution built on the Ethereum network, has recently encountered significant bearish trends. Despite boasting a substantial total value locked (TVL) of approximately $811 million and a stablecoins market capitalization of nearly $1.2 billion, MATIC has seen a decline of approximately 22 percent over the past two weeks, with its price hovering around 73 cents during the mid-London session on Tuesday.
Whales Impact on MATIC
One of the concerning factors contributing to MATIC’s recent decline is the behavior of large MATIC holders, commonly known as “whales.” On-chain analysis provided by Lookonchain reveals that MATIC whales have been actively offloading significant amounts of the cryptocurrency on various centralized exchanges.
- Distressed crypto exchange FTX deposited 8 million MATIC tokens, valued at approximately $6 million, into Coinbase Global and OKX in the past 24 hours.
- Two whale accounts, which received funds from the Polygon Ecosystem Growth wallet, deposited about 20 million MATIC tokens, amounting to approximately $15 million, in the same 24-hour period.
MATIC Price Analysis
Despite the high selling pressure on Polygon (MATIC), famous digital asset analyst alias Captain Faibik expressed a bullish outlook in the near term. Notably, the crypto analyst argues that MATIC’s price has been forming a falling wedge in the four-hour time frame, often followed by a bullish breakout.
This positive perspective on MATIC’s short-term price action is further supported by the recent occurrence of a daily golden cross between the 50 and 200 Moving Averages (MA), accompanied by higher highs and higher lows, indicating a characteristic of a rising trend.
While Polygon (MATIC) has experienced a recent decline in its price due to increased selling pressure from whales, optimism remains within the crypto community. Prominent analyst Captain Faibik suggests that MATIC may be poised for a bullish breakout, citing technical indicators such as the falling wedge formation and the golden cross between Moving Averages. Investors and enthusiasts will closely monitor MATIC’s performance in the coming days to see if these bullish predictions materialize.