On March 13, BTC, which has pushed its all-time high even higher, has now formed a long lower wick. The volatility in the BTC price is not surprising due to high profitability. However, these movements have the potential to trigger much larger losses in altcoins. So, which altcoin could test the 1 dollar region?
Polygon (MATIC) Commentary
As of the time of writing, the MATIC Coin price is at 1.21 dollars, continuing the day with a 3.6% loss. BTC is around 71,500 dollars with approximately a 2% loss. Despite remaining relatively strong during the general market downturn of 2022, MATIC Coin did not perform as expected in the recovery that followed the next year.
However, optimism for the year 2024 has allowed the MATIC Coin price to surpass 1.2 dollars after a long interval. From February 13 to March 7, daily active addresses for MATIC rose from 2,468 to 3,275. This significant jump coincided with the same period as the price increase. We saw the price recover by over 30% in three weeks.
After March 7, however, this momentum weakened and things began to reverse. The historical correlation between the increase in daily active addresses and MATIC’s price movements, considering the possibility of a BTC price drop, makes testing 1 dollar feasible.
The Altcoin Sold by Whales
Another reason for concern over the decline in MATIC Coin price is the decrease in the number of addresses holding 1,000,000 MATIC or more. The number of whales dropped from 276 on March 2 to 258 by March 14.
The sentiment that BTC has reached a local peak suggests that a significant number of whales have begun to convert their profits to cash. Even though the general market rally was impressive during the whale sell-offs, MATIC Coin could only grow by 10%. Moreover, excluding meme coins and stablecoins, MATIC Coin’s price performance was only better than XRP and ICP among the top 20 cryptocurrencies.
Considering all this, we can talk about the potential for the price to fall towards supports at 1.12 and 1.08 dollars, and then to 1 dollar. However, in the opposite scenario, if MATIC Coin’s price closes above 1.23 dollars, it could reach 1.34 dollars. In this case, the highest level since April 2022 will have been seen.
