Polygon Whale Unloads 35M MATIC on Binance, Provoking Selloff

Polygon’s bumpy ride to $1 faces another pullback upon one huge ETH whale’s 35M splash to Binance.

Digital whale carrying boxes of Polygon MATIC coins.
Created by Kornelija Poderskytė from DailyCoin
  • 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.

Onchain signals.

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.

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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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
Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.