Crypto News- In mid-November, Polygon’s (MATIC) price soared to nearly $1, but it has since retreated to $0.73, marking an 8.25% decline in the past seven days, as per CoinMarketCap data.
The dip in MATIC’s price aligns with the broader trend seen across various altcoins, and indications suggest the potential for further downturns. Lookonchain, a smart money on-chain tracker, highlighted some key factors contributing to this possibility in a recent post on X (formerly Twitter).
Surge in Polygon Distribution: Are We on the Verge of a Price Decline?
A Notable Transfer of Tokens
Lookonchain reported that the defunct exchange FTX executed a transfer of 8 million MATIC tokens, valued at $5.95 million, to Coinbase and OKX in the early hours of November 28. Such transactions typically introduce price volatility and imply a potential sell order. This transfer is part of FTX’s ongoing sell-offs after receiving court approval to liquidate its assets.
Additionally, Lookonchain identified two wallets that sent 20 million MATIC to Binance. These wallets are among the 70 recipients who received a portion of the 217 million MATIC from the Polygon Ecosystem Growth. Between November 15 and the present time, MATIC’s price has decreased by 21.27%, reaching $0.94 on November 15.
Potential Drop to $0.70?
From a technical perspective, MATIC’s momentum might continue to be bearish in the coming days. The rejection of $0.78 is a significant factor in this projection. Bulls attempted to support MATIC at $0.75 on November 26, but their efforts were thwarted as the token faced resistance at $0.78. The rejection was intense, leading to a breakdown of the $0.75 support level.
Moreover, MATIC faces the risk of slipping from $0.73, as selling pressure appears prevalent. The Awesome Oscillator (AO) reading, at -0.027, supports this bearish sentiment. If bulls cannot overcome the $0.78 resistance or retest $0.75, there’s a possibility MATIC may decline to $0.70.
The Relative Strength Index (RSI) also indicates increasing downward momentum, with a reading of 33.11, suggesting proximity to oversold conditions. A reversal in MATIC’s direction would hinge on bulls creating a buy wall. However, if demand doesn’t provide sufficient support, countering the bearish price forecast may prove challenging.
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