The price of Polygon’s MATIC cryptocurrency experienced a significant dip to a new low of $0.50 on September 11, following Binance’s confirmation that it would delist the Polygon Network from its NFT Marketplace. This article delves into the impact of rising exchange inflows, totaling 41 million tokens, on MATIC’s price, as well as the possibility of whale investors intervening to defend the $0.50 support level.
MATIC Holders Brace for Sell-Off
Binance’s announcement of the delisting of Polygon Network assets on its NFT Marketplace appears to have triggered a surge in MATIC tokens being moved into cryptocurrency exchanges. On September 2, data from CryptoQuant indicated that Polygon investors held approximately 942.06 million MATIC tokens in exchange wallets. However, by September 11, this figure had increased by an additional 41 million tokens, reaching 983.7 million MATIC. Notably, around 3.5 million of these new inflows occurred between September 9 and September 11, following the NFT Marketplace delisting announcement.
Rising Exchange Reserves, which track the total MATIC holdings in recognized exchange wallets, typically suggest that investors are preparing to sell or trade their tokens in the short term. Since the increase in Exchange Reserves coincided with a notable decline in MATIC’s price, a further rise in these reserves could potentially exert additional downward pressure on MATIC’s price unless matched by increased market demand.
Whale Investors Add to Selling Pressure
Over the past week, a group of savvy crypto whales, holding between 10 million and 100 million MATIC tokens each, has intensified its selling activity. On-chain data indicates that as of September 2, these whales collectively held 189.7 million MATIC tokens. By September 11, their holdings had decreased to 158.3 million tokens, indicating a rapid offloading of 31.4 million tokens.
This trend in whale selling appears to be correlated with the surge in exchange inflows starting on September 2. Given the substantial holdings of these whales, their trading activity can significantly influence the market. The 31.4 million MATIC tokens recently sold by these whales are valued at approximately $15.7 million.
Price Predictions and Support Levels
If MATIC loses the $0.50 support level, it could potentially experience a free fall toward $0.32, where significant support may be found. The In/Out of Money Around Price data suggests that beneath the $0.50 level, the next significant support level is around $0.32. This level is where 24,500 addresses bought a total of 183.4 million tokens. If these holders make substantial purchases to defend their positions, MATIC’s price might see a rebound.
However, if bearish sentiment continues to dominate, MATIC’s price could decline further toward $0.32. On the flip side, if bulls regain control and push MATIC’s price above $1, it may face significant resistance around that level, as 58,000 addresses hold 4.1 billion tokens at an average purchase price of $0.80. This resistance level could prove challenging to breach, as it represents the largest cluster of MATIC holders.
In conclusion, MATIC faces a challenging environment marked by exchange inflows, whale selling, and the repercussions of the Binance delisting. The cryptocurrency’s price trajectory will likely depend on the interplay between these factors and market sentiment.