Several assets of the crypto market have been heavily hit by the recent crash, and MATIC is no exception, as its price lost over 40% in the last two weeks, triggered by the FTX’s downfall. However, the recent partnership of Polygon network with the popular crypto exchange Kraken has brought optimistic hopes to investors with the aim to trade above $1 soon. Unfortunately, it now seems that the bullish hopes may go in vain as whale investors wake up to bring significant selling pressure by cashing out massive holdings.
MATIC Is Ready With A Black Friday Deal!
The Polygon network is now lit like Christmas as MATIC brings excellent news to its community with impactful financial partners. Moreover, Instagram’s integration with the Polygon network for minting NFTs is already building enough hype in the crypto market to push MATIC’s price to new highs.
However, MATIC’s price has been trapped in a crucial zone as whale holders of the market make their moves by transacting massive amounts of holdings to exchanges. Over the last few days, the Polygon network has witnessed a remarkable recovery after the recent market crash due to an increased MATIC accumulation following several positive news that pushed the asset to trade in a slightly bullish region.
However, whales now see the current price as the perfect opportunity to sell off all holdings and book profits made during the surge, resulting in solid selling pressure on MATIC’s price. Recently, an on-chain whale tracker revealed that a whale account transferred 9 million MATIC (~$7.85 million) to the crypto exchange Binance in a proceeding to liquidate the holdings.
Whales To Bring A Death Rally For MATIC Price Soon
Whale holders of MATIC control a significant portion in driving the price fluctuation as massive selling pressure from them creates an extreme fear zone with a pump-and-dump game, which may trigger a downtrend for Polygon to the bottom levels.
A professional crypto analyst, SwalloPremium, predicted that MATIC is poised for a more bearish trend, which can be worse than the current market turmoil. The analyst predicts that a breakout below the support level of $0.77 may take MATIC’s price to a bearish consolidation range of $0.58-$0.62 in the next few days.
If MATIC holds its price above its support level, it may aim to retest a strong resistance at $1.01, from which sellers may open a short position, plunging the asset to its initial support level of $0.77.
Looking at the daily price chart, MATIC has made significant upward progress after taking support at $0.8. Polygon is currently trading at $0.85, with an uptrend of over 1.2% from yesterday’s performance.
Our technical analysis reveals that MATIC may test its resistance level at the EMA-50 trendline near $0.9 as the RSI-14 indicator constantly pushes it to the upside with a level of 47 due to positive market sentiments. If MATIC breaks above $1, it can ensure a clear path to its Bollinger band’s upper limit of $1.2.
However, there is some twist as a failure to trade above 23.6% Fib retracement may thrash MATIC heavily to its monthly lows of $0.76. Moreover, a massive liquidation from its network’s whale holders may trigger MATIC to trade below the Bollinger band’s lower limit of $0.6 as the MACD line shows no sign of recovery and continues to trade in a negative region below the signal line.
Written by: Shayan Chowdhury