Polygon (MATIC) ‘s value might further devalue despite the recent attention it received from its whale holders.
On July 11, the volume of large transactions involving the Layer (L2) token spiked to a seven-day high of $103 million. However, the altcoin’s price has since failed to react and continues on its downtrend.
Polygon Unperturbed By Whale Influence
According to data from IntoTheBlock, on July 11, MATIC’s large transaction volume totaled $103 million. This represented a 1,493.81% surge from the $6.45 million recorded in transaction volume the previous day.
Large transactions are defined as those exceeding $100,000 in value. Therefore, when their volume surges like this, it indicates increased activity among institutional investors. Due to the substantial volumes involved, these large transactions can influence the asset’s price.
However, MATIC’s price has failed to react. At press time, the altcoin trades at $0.49. In fact, in the past 24 hours, the L2 token’s price has dropped by 4%, while its trading volume has increased by over 10%.
Read More: How To Buy Polygon (MATIC) and Everything You Need To Know
A bearish divergence occurs when an asset’s price declines while its trading volume surges. This situation suggests that despite high trading activity, selling pressure is strong enough to drive the price down. It happens when the sentiment trailing an asset is negative. If the trend continues, this may lead to further price declines.
MATIC Price Prediction: No Way Out Just Yet
The negative values returned by MATIC’s Elder-Ray Index confirm the current negative market sentiment. As of this writing, the indicator’s value is -0.03 million.
This indicator measures the relationship between the strength of buyers and sellers in the market. When it returns a negative value, bear power is dominant in the market.
If the bears remain in market control, they may force MATIC’s price down to $0.42.
However, if market sentiment shifts positively, the token’s price might climb to $0.50.
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