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Polygon (MATIC) price is trying to break a critical resistance that has trapped the altcoin price between two limits. This situation is worsened by investors‘ reluctance to hold the asset, likely preferring to balance their losses. The actions of asset holders may be causing the MATIC price to decline. The lack of price increase in the last few days has led investors to notice a sell signal flashing in the network.
Why is MATIC Dropping?
This process can be seen in the difference in daily active addresses (DAA). This is a phenomenon where the price of a cryptocurrency and the number of daily active addresses move in opposite directions. This difference can indicate that the asset is potentially overvalued or undervalued. However, in the case of MATIC, both the price and participation are falling. This causes the network to give a sell signal that individual investors can follow.
It is clear that whales have also followed this path in their recent transactions. Addresses holding 1 to 10 million MATIC tokens sold more than 23 million MATIC. This $17 million supply sold in four days brought their holdings to 913 million MATIC.
This investor group’s actions are known to be quite influential on the price. When these whales buy, the price tends to rise, and when they sell, MATIC drops. Therefore, their sales are likely to lead to a decrease in the altcoin’s value.
MATIC Chart Analysis
MATIC price was consolidated between $0.75 and $0.64 limits last month. These two price points have been tested multiple times as both resistance and support. The above-mentioned conditions highlight similar potential outcomes due to investors’ reluctance to be particularly bullish. The altcoin could fall from its current trading price of $0.69 to $0.64.
The neutral bearish thesis will be invalidated if the MATIC price breaks or breaks out. A breakout will cause the altcoin to rise to $0.80, while a fall below $0.64 will cause it to drop to $0.60.
