Whale Numbers Grow in Polygon’s MATIC Despite Market Downturn
Data from crypto analytics firm Santiment reveals that despite a double-digit decline in the value of Layer-2 (L2) tokens, the number of Polygon (MATIC) whales grew last month. According to the on-chain data provider, MATIC whales holding between 1,000 and 1,000,000 tokens increased by 2% in the last 30 days, with the total number of MATIC holders reaching 115,000 at the time of writing.
Larger Whales Also Increase Holdings
In addition to the smaller whale increase, larger whales holding between 1,000,000 and 100,000,000 MATIC tokens also grew in number. Their count rose by 5% over the examined period, holding a combined 21% of MATIC’s total circulating supply of 9.8 billion tokens. Despite this surge in whale activity, the price of MATIC experienced no corresponding uptick, instead falling by 21% during the same period.
Decline in MATIC Price and Broader Market Trends
The drop in MATIC’s price reflects a broader downturn in the crypto market. According to data from CoinGecko, global crypto market capitalization decreased by 11% over the last 30 days, likely due to a reduction in transaction activities. This downturn in the market aligns with the bearish sentiment surrounding MATIC, as indicated by fundamental momentum indicators.
Indicators Suggest MATIC May Be Oversold
Expert analysis shows that key momentum indicators for MATIC are below their center lines. The Relative Strength Index (RSI) for MATIC was at 38.41, and the Money Flow Index (MFI) was at 21.34, indicating significant downward pressure on the token’s price. This aligns with other technical indicators, such as the parabolic SAR, which suggests the market could continue in a downward trend.
Implications for MATIC and the Crypto Market
The parabolic SAR indicator, with its dotted lines positioned above the token’s price, confirms the current downward trend. This pattern suggests that MATIC’s price could continue to fall, aligning with broader crypto market trends. Despite the 11% drop in global market capitalization, the 21% decline in MATIC’s price indicates potential overselling. Crypto analysts caution that the price may face further downward pressure if current market conditions persist.
