Journalist
Posted:
- MATIC declined to $0.85, then recovered after the Polygon team sold some tokens.
- The price might climb to $0.96 if bullish momentum remains.
The Polygon [MATIC] Foundation has sent 9 million tokens to Binance [BNB], according to a recent revelation by Spot On Chain.
As per the on-chain tracking platform, this was the second time in the last five days that Polygon has offloaded MATIC. The first transaction was a $13.2 million transfer to the same exchange.
Wallet 0x57f (linked to #Polygon Foundation) deposited 9M $MATIC ($7.75M) to #Binance ~11hrs ago.
Overall, there have been 2 wallets linked to the Polygon Foundation depositing 15.5M $MATIC to #Binance at ~$0.85 ($13.2M) in the past 5 days.$MATIC price slightly dipped after… pic.twitter.com/byEOI57ldA
— Spot On Chain (@spotonchain) February 14, 2024
The most recent transaction was worth $7.75 million. AMBCrypto observed MATIC’s price after the transactions and noticed that it fell from a peak of $0.88 to $0.85 afterward.
However, press time data from CoinMarketCap showed that the token had recovered.
The sell-off can’t stop buyers
Typically, when large transfers like this occur, the price of the cryptocurrency falls due to selling pressure.
Therefore, MATIC’s quick recovery indicated that buying pressure was outpacing whatever sellers were doing. If this was the case, then it means some other things were happening on-chain.
This propelled us to check Polygon’s volume. Using Santiment’s data, we noticed that the volume had picked up. At press time, the metric had increased to 361.49 million.
When put alongside the price action, the rising volume could serve as strength for the direction.
Source: Santiment
Polygon’s price at $0.88 meant that the value was back to the upside. Therefore, a rising volume and increasing price could trigger another jump.
Should this be the case, MATIC could add another 10% gain. If this is the case, we could see MATIC trading around $0.96 in the coming days.
But if volume increases while price rises, the uptrend could become weak. In this situation, MATIC’s price might pull back, and a slide to $0.80 could be an option.
But if we were to go by the current market sentiment, the bullish bias looks like one that could be validated.
Conviction in MATIC’s potential climbs
Beyond the short-term outlook, AMBCrypto looked at the total amount of MATIC holders. As of the 14th of January, the number of MATIC holders was 63.71 million.
But on Valentine’s Day, that number had grown to 67.47 million. An increase like this suggests that more market participants are convinced that the token would perform well in the long term.
However, the Weighted Sentiment was -0.688. Weighted Sentiment uses the unique social volume to determine the perception around a project.
Thus, the negative reading suggests that market players felt that MATIC’s uptrend might not last long— at least based on discussion and comments.
Source: Santiment
Read Polygon’s [MATIC] Price Prediction 2024-2025
Going forward, MATIC’s price might surge past $0.90. If more transfers to exchanges appear from Polygon Foundation’s end, the value could decrease.
However, a decrease in exchange inflow could increase MATIC’s chances of hitting $1.
