MATIC’s price is currently at an eight-month low and may face further declines. Recent data shows a spike in realized losses, indicating a widespread selling sentiment. Additionally, whales have been offloading their holdings, with $14 million worth of MATIC sold in just four days.
Polygon’s (MATIC) price is heading downward as the altcoin loses support from its investors. Whales are selling off their holdings, and the rising volume of losses is adding to the bearish outlook for MATIC.
MATIC Faces Increased Selling Pressure as Whale Activity Surges
As MATIC’s price continues to decline, bearish conditions are intensifying for investors. This is evident from recent spikes in realized losses, indicating that more investors are selling their assets at a loss.
The growing sentiment of selling is reflected in the actions of major holders. Over the past four days, whales have sold approximately 28 million MATIC, worth over $14 million, contributing to the bearish trend. The addresses holding between 1 million and 10 million MATIC have significantly reduced their holdings, decreasing from 944 million to 891 million MATIC.
MATIC Whale Holdings. Source: Santiment
This substantial offloading by whales, who have considerable influence over the price, suggests that the bearish trend could continue. As these large holders sell off their assets, MATIC’s price may face further declines, exacerbating the losses for existing holders.
MATIC Price Struggles at Eight-Month Low: Key Support Level Under Threat
Currently trading at $0.55, MATIC’s price has reached an eight-month low and is hovering just above a critical support level of $0.53. This support has only been broken twice in the past two years, making it a crucial level to watch.
Given the current bearish sentiment and the increased selling pressure, there is a significant risk that MATIC could break below this support level once more. If this happens, the price could drop to $0.50, with further declines potentially leading to overselling.
MATIC Price Analysis. Source: TradingView
However, since this support level has been tested before, there is also a chance that MATIC could rebound from $0.53. If the price bounces off this support, it might reclaim $0.60, which would invalidate the bearish outlook and potentially push the price higher.
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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