The price of MATIC is experiencing a lack of confidence among buyers due to a pre-halving correction, which is bolstering short positions. This correction in the market has notably affected MATIC’s price, pushing it to a new low for the year.
However, amidst this decline, major investors are seizing the opportunity to accumulate more tokens, leading analysts to predict a surge in the near future. Despite this optimistic outlook, a significant on-chain indicator may present obstacles to the price’s upward momentum.
Whales Accumulate MATIC Amid Market Downturn
Bitcoin’s recent dip to $60K has triggered significant selling pressure across the altcoin market, including MATIC, weighing on its price. However, savvy investors view this downturn as an opportunity to accumulate MATIC at discounted rates. Notably, large holders, often referred to as whales, have been particularly active during this market decline.
There has been a substantial increase in MATIC accumulation by whales, with one notable investor acquiring nearly 2 million tokens. This trend is further evidenced by a rise in the number of wallets holding significant amounts of MATIC, ranging from 1,000 to 10 million coins.
Additionally, there has been a noticeable uptick in large transactions exceeding $100,000, indicating a concerted effort by whales to capitalize on the market downturn. Data from IntoTheBlock shows that the volume of these large transactions surged from a low of $28 million to over $130 million during MATIC’s decline. This surge in large transactions during price dips suggests strategic accumulation by whales.
Analysts anticipate that MATIC has established strong support levels, and the recent buying activity by whales could potentially propel the price to resistance. However, concerns arise from the Netflow metric, which has surged above the positive region, indicating increasing inflow compared to outflow. Currently standing at 3.5 million MATIC, this metric may create additional selling pressure near peak prices.
MATIC Price Analysis: Potential Recovery Amidst Bearish Pressures
Sharp Decline and Crucial Levels: The price of MATIC recently experienced a sharp decline, dipping below the crucial support level of $0.9 and forming a descending bearish pattern. However, buyers have shown resilience in defending a decline below the $0.6 level. As of now, MATIC is trading at $0.685, reflecting a decline of over 1.4% in the last 24 hours.
Hope for Bullish Investors: Despite the bearish trend, there’s a glimmer of hope for bullish investors as the price has managed to hold around the EMA20 trend line, indicating buying interest at lower price levels. Bulls are now positioning themselves for a potential recovery, although they may face significant selling pressure around the descending resistance line.
Potential Scenarios: In case of a rejection from the resistance line, the MATIC/USDT pair could revisit the $0.6 support level and potentially decline further to $0.5. A breach below this level may lead to a drop to $0.35. The first indication of bullish strength would emerge with a breakthrough above the resistance line, propelling the price toward $1.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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