Polygon (MATIC) Defies Market Correction To Tap 2-Month High

Polygon’s MATIC resists the broader market correction as whale activity picks up.

Man mastering a freestyle motocross jump on a purple Polygon logo.
Created by Gabor Kovacs from DailyCoin
  • Polygon’s MATIC is moving higher despite a broader market correction.
  • The move follows an uptick in whale activity.
  • The asset faces obstacles on its road to $1.

The crypto markets have kicked things off with significant volatility in October 2023. 

Essentially moving in lockstep with Bitcoin (BTC), most major crypto asset prices were locked in a correction on Tuesday, October 3, after enjoying a significant pump the day before. However, Polygon (MATIC) has managed to swim against the current as whales come out to play. Can MATIC sustain its run?

Whale Moves Big Bag

On Tuesday, October 3, Santiment Feed highlighted that MATIC experienced a 4% jump to $0.568, its highest point since August 2023, while other crypto assets shed early October 2023 gains

Santiment noted that MATIC’s recent spike coincided with the movement of 37 million MATIC (worth approximately $20.7 million) on-chain, the largest single transaction on the Polygon network since July. It comes as whale activity on Polygon has entered an uptrend in the past week. 

Number of large transactions on Polygon over the past 7 days.
Number of large transactions on Polygon over the past 7 days. Source: IntoTheBlock

As highlighted by IntoTheBlock data, the number of transactions valued at over $100k on the Polygon network has jumped from 24 on September 26 to 71 on October 3, a whopping 195% increase. At the same time, the volume of these large transactions has also surged from 56 million MATIC on September 26 to 159.02 million MATIC on October 3, representing a massive 184% increase.

Volume of large transactions on Polygon over the past 7 days.
Volume of large transactions on Polygon over the past 7 days. Source: IntoTheBlock

While the specific reason for this recent uptick in whale activity on Polygon is unclear, the network has had a string of positive developments in the past few days, with Google becoming a validator as the network works toward its 2.0 roadmap.

What’s Next for MATIC’s Price?

While the immediate goal for many members of the Polygon community remains a return to $1, MATIC’s price still faces significant hurdles. For one, in the short term, the price continues to face resistance at $0.5778 and appears to be forming a double-top pattern on the four-hour chart. Completing this bearish chart formation could see the price drop to $0.5260.

MATIC/USDT 4-hour candle chart.
MATIC/USDT 4-hour candle chart. Source: TradingView

Alternatively, MATIC could get locked in a range between the potential neckline of the double-top pattern at $0.5450 and the resistance at $0.5778. These are the levels to watch over the next few days, as a close above them could indicate the asset’s next direction in the short term, either towards $0.6 or $0.5.

On the Flipside

Why This Matters

Despite Polygon’s multiple developmental strides, MATIC’s price action has remained largely muted amid a broader disinterest in crypto assets brought on by macroeconomic conditions and the collapse of numerous crypto firms. The lack of movement has sparked frustration among investors. However, MATIC’s resilience amid a broader market correction could suggest the potential for a solid finish to 2023.

Read this to learn more about Polygon’s recent strides:
Polygon Smashes Total Transaction Milestone as 2.0 Nears

Learn more about Bitcoin’s recent price action and what analysts think of the asset’s prospects in October:
Bitcoin Sheds Early October Gains: Is $30K Still in Play?

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Okoya David

David Okoya is a crypto news reporter at DailyCoin based in Nigeria. He covers various topics related to the cryptocurrency industry, including exchanges, regulations, and price movements, and strives to bring fresh angles to breaking news. With experience as a freelance crypto news writer, David upholds the highest journalistic standards, telling complete stories and answering lingering questions whenever possible.