MATIC facing some selling pressure from early whales as it reaches top of trading range
An early MATIC whale makes an unexpected move by selling millions worth of tokens amid the massive rise of the asset on the market. In exchange for Polygon’s token, the whale grabs some DAI. The first MATIC transaction on the whale’s wallet occurred when the token was trading at $0.02.
As on-chain data shared by Lookonchain suggests, the early holder sold 4.5 million tokens in exchange for 5.2 million DAI at the average price of $1.14. Considering the fact that the addresses received part of those funds at the average price of $0.02, the profit made reached triple digits.
A $MATIC early holder sold 4,553,023 $MATIC for 5,200,081 $DAI at an average price of $1.14 today.
The $MATIC holder received 4M $MATIC from #Binance when the price is $0.02.https://t.co/t1yM9Qergc pic.twitter.com/glPeg3KMja
— Lookonchain (@lookonchain) January 28, 2023
The most likely reason behind such an unexpected move is the price performance of the MATIC token, which has been rallying on the market in the past few days. Polygon’s token has gained more than 52% to its value since reaching the local bottom on Jan. 1.
In the new year, the token has been showing way more solid performance compared to the end of 2022. Even besides the market-wide rally, MATIC began its movement upward earlier than mastodons like Bitcoin or Ethereum.
Prior to the massive recovery of the market, Polygon was actively working on the fundamental growth of the network by funding various blockchain-related events, attracting more developers to the ecosystem and developing it based on their long-term vision.
From a price perspective, MATIC has been showing way more solid performance than some alternatives. The token has been moving in a rangebound since July, and the most recent price move put it at the top of the range, which could have been the reasoning behind the whale’s decision to sell his holdings.