- Key on-chain signals turn bearish for MATIC amid a 9% price crumble.
- Two consecutive large transactions spark dump angst among investors.
- Top crypto analyst spots a massive triangle breakout pattern for $MATIC.
Polygon’s blockchain turned red this Monday when the Layer-2 native $MATIC slumped by 9% in the last 24 hours. According to several on-chain factors, Polygon’s road to $1 is heavily challenged by the crypto bears taking over the steering wheel.
To illustrate, the 16.69% drop in holders making a profit comes with large transactions, net network growth, and concentration of large positions dropping by a margin. The on-chain analytics enterprise IntoTheBlock reported a $15M hole in crypto exchange inflows versus outflows for the #16 ranked altcoin.
Polygon (MATIC) trades at $0.771023 at press time, according to CoinGecko. The sharp 9% daily drop sends $MATIC several key thresholds below the weekly high of $0.900025, recorded on December 14, 2023. One of the key reasons for this is two ensuing crypto whale transactions on Ethereum’s PoS chain.
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In the late hours of Sunday, the Ethereum whale unloaded 17,299,458 MATIC tokens twice, sending an equivalent of $26,906,355 to Binance. The move sounded an alarm among crypto investors on Twitter, and MATIC holders expressed their dump fears with monkey emojis.
MATIC’s Yearly Symmetrical Triangle Explained
From a technical point of view, Polygon’s price movement throughout the year took shape in a symmetrical triangle, according to macroanalysis. The symmetrical triangle signals a triple-digit breakout opportunity if MATIC’s price stays inside the marked price range from $0.55 to $1.
A diagram by crypto chart analyst Captain Faibik shows an entered breakout phase since the Uptober rally, beginning on October 22, 2023, at the $0.55 support levels for $MATIC. Aiming for $1, MATIC got rejected at this price target twice in mid-November. Additionally, Captain Faibik spots a 535% bull run likeability for $MATIC if the altcoin finishes the year above the long-term $1 price target.
On the Flipside
- MATIC’s price movement also heavily depends on upgrades on the Polygon Layer-2 chain. For instance, Polygon Labs recently implemented Celestia Data into their L2 toolkit, boosting on-chain developer activity.
Why This Matters
Cryptocurrency whale actions often commence a price trend and imply large holder sentiment towards the coin.
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