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Large investors‘ sales in altcoins could be a harbinger of significant price movements. At the time of writing, Bitcoin was facing the risk of falling below $60,000 again while a popular altcoin was witnessing an exodus of whales. We had discussed medium-term risks and the general lack of appetite is well known to us all. But what are these whales doing while the long-term trend is upward?
Polygon (MATIC)
In the past few hours, with the BTC decline, the price of MATIC Coin has dropped below $0.7 and is now at $0.66. The altcoin, continuing the day with a 3% loss, did not perform as well as expected in the general market rise in 2024. The strengthening competitive environment and the volumes of newly launched altcoins have prevented the Polygon team from maintaining a strong stance.
MATIC Coin is not having good days both due to more delays than expected in token transformation and the increase in alternatives in the layer2 space. Moreover, MATIC Coin whales have been highlighting their lack of faith in the future of the price with their net sales for a while now.
In just one week, addresses holding between 1 million and 10 million MATIC made sales of 21 million units. Although profitable at current prices with approximately $15 million in sales, this might indicate a weakening belief in the medium-term potential for further rises.
The problem is not only on the whales’ side. As can be seen from the sharp decline in trading volume, individual investors on the MATIC network are also disinterested. The volume on the network has dropped to $21 million today compared to its previous average of $77 million.
MATIC Coin Predictions
Decreasing activity on the network is considered a trigger for a downtrend in price movement. Whale sales and negativity in the BTC price, along with increasing competition in the layer2 space, are also negative. Last month, the MATIC price fluctuated between $0.65 and $0.75. Now, with the price finding buyers at $0.66, if it loses the base of the narrow range, a journey towards deeper lows could begin.
In a possible downturn scenario, new lows between $0.6 and $0.5 are likely. On the other hand, if Polygon (MATIC) Coin investors can turn $0.75 back into support, levels of $0.8 and $1 could be targeted.
