Polygon (MATIC) Tanks as Whales Dump on Weekend Rally

Polygon (MATIC) erases its weekend gains as whales reduce exposure.

Whales dumping Polygon MATIC coins at the bottom of digital land.
Created by Kornelija Poderskytė from DailyCoin
  • Polygon’s MATIC has erased its weekend gains.
  • The recent market correction follows potential whale selling and a Bitcoin price correction.
  • Data a prominent analyst shares suggests that MATIC’s horizons may still be bright.

The recent upward price momentum experienced by crypto assets over the weekend has cooled, with many assets now recording significant price corrections. Among these assets is Polygon’s MATIC.

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Over the weekend, MATIC surged over the $0.9 price level, rekindling excitement about a potential run to the highly coveted $1 price point. This excitement has, however, proved fleeting as the asset has now shed all of its weekend gains and more amid apparent selling from venture capitalists (VCs) and whales and a Bitcoin flash crash.

MATIC Loses Weekend Gains

On Sunday, December 10, MATIC experienced a 6% surge from $0.8786 to $0.9318 as prices surged in the crypto markets. But the asset has erased these gains to trade at $0.8508, according to CoinMarketCap data at the time of writing on Monday, December 11.

MATIC/USDT daily candle price chart.
MATIC/USDT daily candle price chart. Source: TradingView

The asset’s decline comes as some whales seemingly rushed to reduce their MATIC exposure amid the weekend rally. On Sunday, crypto analytics platform Spot on Chain reported that three MATIC whales, including Layer X Capital, had sent a total of 12.53 million MATIC (worth approximately $11.33 million) to Binance and Coinbase, ramping up the selling pressure on the asset.

At the same time, a recent sharp decline in Bitcoin prices from above $44k to $41k has also shaken broader crypto market sentiment as asset prices tend to move in tandem with the crypto market cap leader.

Is MATIC Still Bullish?

According to prominent crypto analyst Ali Martinez, MATIC’s future trajectory may depend on whether the asset can hold the $0.80 to $0.86 price range. The analyst described this price range as a “key demand zone,” as about 42,000 wallet addresses acquired a combined 5.8 billion MATIC at these price levels. The staggering figure represents nearly 60% of the asset’s total supply.

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“Given the minimal resistance ahead, Polygon seems primed for a bull run as long as this level holds,” Ali wrote in an X post.

Another thing to watch is whether Bitcoin prices receive new tailwinds, which could significantly improve market sentiment.

On the Flipside

  • Polygon founder Sandeep Nailwal has promised exciting developments for December 2023 that could strengthen MATIC’s demand in the short term.
  • At current prices, MATIC is up 12% year-to-date (YTD).

Why This Matters

Recent MATIC price action highlights the volatility of the crypto market while presenting another instance where whale activity can preempt price swings.

Read this for more on MATIC whale activity:
Polygon Whale’s 7.5M MATIC Move Powers Up Polygon’s $1 Quest

Learn more about Ethereum’s recent price action:
Ethereum (ETH) Surges to 19-Month High as Whales Accumulate

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.

Author
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.