MATIC Whales Fail to Impact Price Despite Accumulation Surge
Despite increased accumulation by MATIC whales, the price of Polygon’s altcoin continues to fall. According to data from Santiment, a notable number of Polygon [MATIC] whales have accumulated more tokens in the last month, but this hasn’t prevented a price decline. This trend raises questions about whether the recent whale activity can eventually turn the tide.
Whale Accumulation on the Rise
In the past 30 days, the count of MATIC whales holding between 1,000 and 1,000,000 tokens has increased by 2%. As of now, there are approximately 115,000 holders in this cohort. This increase indicates a growing interest among smaller whale investors in the Polygon network.
Moreover, larger whales with holdings between 1,000,000 and 100,000,000 MATIC tokens have also been accumulating. Their count has risen by 5% over the same period. Collectively, these whales now hold 21% of MATIC’s total circulating supply of 9.8 billion tokens.
MATIC Price Continues to Decline
Despite this increased whale activity, MATIC’s price has not experienced a corresponding rally. According to CoinMarketCap data, MATIC’s price fell by 21% in the last month, indicating a broader downward trend in the cryptocurrency market. At the time of writing, MATIC was trading at around $0.72.
The decline in MATIC’s price reflects the general downward trend in the cryptocurrency market. CoinGecko’s data shows that the global cryptocurrency market capitalization has decreased by 11% over the past 30 days, suggesting that market conditions are less favorable for most altcoins.
Technical Indicators Signal Bearish Momentum
Additional technical analysis of MATIC’s price movements reveals a significant drop in demand. Observing key momentum indicators on a 3-day chart, the Relative Strength Index (RSI) is at 38.41, and the Money Flow Index (MFI) is at 21.34, indicating oversold conditions and considerable bearish pressure on the token’s price.
The Parabolic SAR indicator further supports this bearish outlook. Currently, the indicator’s dotted lines are positioned above MATIC’s price, suggesting that the asset’s price is likely to continue its downward trend. This setup indicates that the market is experiencing a decline, with little sign of an imminent reversal.
Conclusion
Despite the increase in whale accumulation, MATIC’s price continues to fall, reflecting the broader cryptocurrency market’s downturn. The bearish momentum indicated by various technical indicators suggests that MATIC may continue to face downward pressure. Investors should closely monitor market trends and whale activity for potential shifts in sentiment.
