The market is now calm after the big ups and downs from yesterday, caused by wrong information about the approval of a spot Bitcoin ETF. Interestingly, many altcoins have bounced back from the uncertainty. Currently, MATIC’s price is showing some positive signs according to on-chain data. As more people are taking their MATIC out of exchanges, it seems like holders are getting ready for the price to possibly go up quickly in the next few hours.
MATIC Holders Are In Accumulation Mode
Amid mixed market reaction, MATIC flashed a bullish signal, a move that market analysts and investors did not see coming, as its netflow took an unexpected move into the negative.
The concept of netflow in the market refers to the difference between the number of tokens moving into exchanges and those moving out.
A negative netflow indicates that more MATIC is being withdrawn from exchanges than is being deposited. This is typically a bullish signal for the token, suggesting a decrease in selling pressure and a potential increase in holding among investors, who may be anticipating a positive price movement. The netflow is currently at -2.58 million MATIC.
Yet, worries of a downward trend are growing because big investors made substantial moves recently. The volume of large transactions spiked, going from just $13.6 million to a whopping $43.7 million in just one day, highlighting how these “whale” investors can move MATIC’s value.
What’s more, the trend that usually indicates a positive outlook has slipped. Big investors are now moving more of their holdings into exchanges, with the relevant ratio shifting from -1.85 to 1.96. This change suggests they might be planning to sell off their stakes, which could challenge any buying interest over time. Essentially, if these whales start selling their holdings, it could push MATIC’s price down due to increased supply on the market.
What’s Next For MATIC Price?
MATIC has been experiencing a slump after failing to surge above $0.55. However, there’s hope, as the bears haven’t fully leveraged this downturn. This situation points to a potential absence of aggressive selling when prices are low.
Currently, the bulls are attempting to defend a decline below $0.5 as the bears aren’t backing down easily. If bulls lose confidence, it might bring a further plunge in the MATIC price below $0.49, potentially triggering a more substantial price drop. If this happens, the next safety nets are anticipated at $0.42 and subsequently at $0.31.
For the bulls to indicate a strong reversal from the current scenario, they need to send the price above the 200-day EMA and maintain it at that level. Should this occur, the MATIC price might initially target a recovery price of $0.6, followed by a further climb to $0.69.
