The popular crypto, Polygon, came under fresh attack from the bears as the price has experienced a massive sell-off since the early trading hours. While the traders appear to have switched to panic mode, the trend may get more impulsive, slashing the price harder below the major support levels. Moreover, now that the whales also appear to have become uncertain about the next price action, the MATIC price is believed to trigger a fresh bearish action in the coming days.
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In an eye-catching development, massive whale transfers have been recorded in the past 24 hours. More surprisingly, huge amounts of MATIC have been transferred from Polygon staking and also from unknown wallets to Binance, raising speculation of a massive sell-off. As the rise in the exchange balance occurs only when the traders wish to sell or swap their crypto, a huge selling pressure appears to be fast approaching.
One of the popular analysts lists the huge transfers made in the past few hours. Nearly 60 million MATIC worth $60.8 million were transferred from an unknown wallet to Binance, and 80 million MATIC worth $78.2 million were transferred from Polygon Staking again to Binance. While the source of the wallet is still unknown, the withdrawal of staked MATIC may surely impact the price in the long run.
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So What’s Next? How Low Will the MATIC Price Drop?
The MATIC price was trading within a massively expanding rising channel, which is largely considered bearish. Hence, a bearish pullback was largely imminent, but a rebound from the lower support was expected as the market was slowly turning bullish. However, the fresh breakdown that was triggered during the past weekend, dragged the price extremely low.
The MATIC price has now plunged below one of the major support levels of $1.05, attempting to prevent an excessive pullback. Meanwhile, the RSI has dropped below 40, indicating the strength of the bears, which may not be good for a healthy price rally. Therefore, a plunge to $0.95 may be expected but a rebound could also be pre-programmed as the ADX that represents the strength of the rally has displayed a bullish divergence.
Source: https://coinpedia.org/price-analysis/massive-whale-transfers-point-towards-a-bearish-trend-for-polygon-matic-price/