MATIC Eyes Rally to $0.65 Amid Polygon Network Developments

MATIC Eyes Rally to $0.65 Amid Polygon Network Developments

MATIC price is poised for a potential rally to $0.65, driven by recent significant movements within the Polygon network. Currently trading near critical technical levels, the recent transfer of $8.1 million worth of MATIC tokens to Binance by the Polygon Foundation has captured the attention of investors, adding further intrigue to the asset’s price trajectory.

This substantial transfer aligns with increasing whale activity and comes as the network gears up for a major token migration to POL. Investors are now closely monitoring how these factors might influence MATIC’s price in the coming weeks.

Whale Activity Indicates Potential MATIC Price Surge

Following a breakout from a three-month bearish trend, Polygon’s price is gradually turning bullish. Despite a 3% dip in the last 24 hours, MATIC is currently trading at $0.5065, with this level offering strong support. Many investors are optimistic about a potential rebound from this point, which could lead to a 25% price increase, taking MATIC to $0.65, potentially ahead of the upcoming migration to POL.

Recently, whale activity within the Polygon network has surged. With less than a week remaining before the anticipated token migration, many are likely looking to accumulate MATIC at lower prices.

On August 27, Santiment reported a spike in whale transactions, noting nine significant trades involving investors holding over $100,000 worth of MATIC. This activity coincided with MATIC hitting $0.5016, its lowest price of the week, suggesting that whales are accumulating the token in preparation for upcoming changes.

Additionally, data from IntoTheBlock indicates that large holders’ netflow turned positive on August 26 and has been steadily rising since August 24, further supporting the notion that whales are accumulating MATIC tokens.

Is Polygon Preparing for a Sell-Off Before Migration?

The Polygon Foundation has transferred 15.49 million MATIC (approximately $8.1 million) to Binance over the past five days, according to data from Spot on Chain.

The foundation’s wallet still holds 13 million MATIC under staking, with these tokens in possession since April 2023, following their receipt from the Polygon Foundation contract.

The reason behind this significant transfer to Binance remains unclear. However, it raises concerns, as large token deposits to exchanges often signal a potential sell-off.

MATIC Price Forecast: Aiming for $0.65 if Key Support Holds

MATIC is currently trading at the 50-day exponential moving average (EMA) and is eyeing the 200-day EMA, which sits 25% above its current price.

The Relative Strength Index (RSI) is bouncing off its 14-day simple moving average (SMA), indicating strong bullish momentum. With the RSI at 56.34, there’s still considerable room for MATIC to rise toward the $0.65 target.

Traders should closely monitor the key support level at $0.5065. A sustained hold above this level could pave the way for significant gains in the lead-up to the POL token migration.