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Polygon (MATIC) Fails to Escape the Curse of Consolidation – What’s Next 

2 mins
Updated by Ryan Boltman
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In Brief

  • MATIC price has been stuck between $0.64 and $0.75 for a little under two months now.
  • The network is flashing a sell signal owing to the declining participation, inducing bearishness.
  • The whales are adhering to this sentiment, having dumped $17 million worth of MATIC in four days.
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Polygon (MATIC) price is struggling to break above a critical resistance that has left the altcoin stuck within two limits.

To make this worse, the investors are not too keen on HODLing either, as they are likely opting to offset their losses.

Polygon Investors Are Pulling Back?

MATIC price could be taking a dip, owing to the asset’s holders’ actions. In the last few days, the lack of increase in price has resulted in the investors noting a sell sign flashing across the network.

This is visible in the price daily active addresses (DAA) divergence. This is a phenomenon where the price of a cryptocurrency and the number of its daily active addresses move in opposite directions. This divergence can indicate potential overvaluation or undervaluation of the asset.

In the case of MATIC though, both price and participation are declining. This results in the network flashing a sell signal which the retail investors could follow.

MATIC Price DAA Divergence.
MATIC Price DAA Divergence. Source: Santiment

As is the whales are following this path evident in their recent dumping. The addresses holding between 1 million and 10 million MATIC tokens have sold off more than 23 million MATIC. This $17 million worth of supply sold in the span of four days has brought their holdings to 913 million MATIC.

This group of investors is known to be highly influential on the price as their actions lead to the price. When these whales buy, the price tends to go up, and when they sell, MATIC takes a dip.

Read More: How To Buy Polygon (MATIC) and Everything You Need To Know

MATIC Whale Holdings.
MATIC Whale Holdings. Source: Santiment

Thus, their selling could likely translate to a decline in the altcoin’s value.

MATIC Price Prediction: Decline May Continue

MATIC price has been consolidated for the past month within the limits of $0.75 and $0.64. These two price points have been tested multiple times as both resistance and support, respectively.

The aforementioned conditions highlight similar potential outcome since the investors are not particularly bullish. The altcoin could drop back to $0.64 from the current trading price of $0.69.

Read More: Polygon (MATIC) Price Prediction 2024/2025/2030

MATIC Price Analysis.
MATIC Price Analysis. Source: TradingView

Should MATIC price break out or break down, the neutral bearish thesis would be invalidated. A breakout would send the altcoin rising towards $0.80, while a fall below $0.64 will result in a drop to $0.60.

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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Aaryamann Shrivastava
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...