According to data from the crypto analytics firm Santiment, despite the double-digit decline in the value of Layer-2 (L2) tokens, the number of Polygon (MATIC) whales increased last month. According to the on-chain data provider, the number of MATIC whales holding between 1,000 and 1,000,000 tokens increased by 2% in the last 30 days. At the time of writing, the number of MATIC holders was 115,000.
Whale Numbers Grow in MATIC
Similarly, larger whales holding between 1,000,000 and 100,000,000 MATIC tokens also increased their holdings. Their numbers increased by 5% during the examined period. At the time of writing, they held 21% of MATIC’s circulating supply of 9.8 billion tokens. Despite the increase in whale activity last month, there was no increase in the price of MATIC. According to data obtained from the website 21milyon.com, its price fell by 21% during this period.
Moreover, the price drop of MATIC last month reflects the general downturn recorded in the crypto market at that time. According to CoinGecko’s data, due to the decrease in transaction activities, the global crypto market capitalization fell by 11% in the last 30 days.
Current Data on MATIC
Experts’ observed fundamental momentum indicators for the cryptocurrency were below their respective center lines. For example, MATIC’s Relative Strength Index (RSI) was 38.41, and the Money Flow Index (MFI) was 21.34. These indicators suggest that bears are exerting significant downward pressure on the price, which could indicate that the altcoin is oversold.
Furthermore, the downward trend in MATIC activity was confirmed by the price being below the parabolic SAR indicator at the time of writing. This indicator is used to determine potential trend directions and reversals. When dotted lines are placed above a token’s price, it indicates that the market is in a downturn. This situation shows that the price of the token has dropped and may continue to fall. While the global crypto market fell by 11%, the drop in MATIC’s price indicates overselling. Crypto analysts suggest that the price could fall further.
