Polygon (MATIC) rallied 6% as the market reacted to Ethereum’s successful network upgrade, but on-chain data suggests the market isn’t bullish on MATIC’s long-term prospects yet. Are Polygon bulls steadfast in preventing a deep price correction?
After the Shapella upgrade, MATIC dismissed concerns about a downtrend and posted a 7% gain. But whale hawkish sentiment and an influx of tokens into exchanges suggest that altcoins could fall back below $1 soon.
Shapella’s upgraded Crypto Whale Eagle
Last week, a slew of crypto whales upgraded the Ethereum network to accumulate MATIC. But according to Santiment’s on-chain data, they are now neutral.
Whales holding balances between 100,000 and 100 million MATIC purchased 50 million tokens worth $51 million between April 5 and April 12 during the Ethereum network upgrade build.
The chart below shows that whales have now turned hawkish, holding their balance at around 523 million as of April 12.
MATIC price and Whale supply distribution for April 2023 | Source: mood
The Whale Supply Distribution indicator tracks the inflow and outflow of large investor wallet balances. A dark shadow hangs over the overall market sentiment swirling around the web as whales stop buying.
hOLD MATIC FOR SALE
As the market awaits the whales’ next move, the influx of exchange tokens is further indication that MATIC holders may soon enter into a mild sell-off.
On-chain data from Glassnode shows that the balance on the MATIC exchange has surged 4% over the past week. Exchange balance is a financial metric that tracks the amount of tokens in reputable exchange wallets in real time.
The graph below shows that from April 10 to April 19, the MATIC balance on exchanges increased from 860 million to approximately 893 million.
MATIC price and Foreign Exchange Balances April 2023 | Source: glass node
When holders move tokens to exchanges, it is usually a sign that they are looking to exit long positions or take short-term trading opportunities. Increased selling pressure can lead to price adjustments if there is not enough demand to meet.
All in all, hawkish whale sentiment and inter-exchange flows suggest that MATIC prices may soon mirror the current downtrend in the broader crypto market.
MATIC Price Prediction: billionRetracement likely to stabilize around $0.95
IntoTheBlock’s Global In/Out of The Money shows that MATIC may hit an important buy wall around $0.95, which could help temporarily arrest the downside.
Considering the chart below, MATIC may lose its current support at $1.10. Even so, the 57,000 addresses holding 669,000 coins may try to bounce back. However, if this support fails, 50,000 addresses buying 4.5 billion MATIC at an average price of $0.95 will be the next line of defense.
price distribution Glom MATIC in April 2023 | Source: enter the block
However, the bulls may invalidate the bearish market sentiment if MATIC breaks above the $1.18 resistance area. But as mentioned above, 15,000 addresses holding 578 million coins here may limit the upside. But if this resistance area is breached, further gains to $1.29 are possible.
- MATIC price is at a decisive moment, what’s next?
- After the short-term breakout, will MATIC continue to fall?
- Robert Kiyosaki Bets Bitcoin Price Will Continue to Rise
Mingying
According to Beincrypto
