Polygon, a layer-2 cryptocurrency, has recently seen a decline in its market value, in line with broader declines in the crypto markets. The MATIC price peaked at $2.92 on December 27, 2021, before experiencing a significant correction. Over the past week, the altcoin has seen a 5% decline, attributed to general market volatility.
Polygon whales increase their holdings amid MATIC price crash
Despite a drop in Polygon price, Santiment Data shows that cryptocurrency whales are taking the opportunity to stock up on the asset. This trend could indicate their confidence in a possible future recovery or increase in value.
An analysis of the transactions shows that there is increased activity when prices fall, which indicates strategic accumulation rather than panic selling by major shareholders.
Recent trends have shown a notable correlation between network growth and token prices, such as MATIC. Observations indicate a significant decline in network activity, reflected in a concurrent decline in MATIC’s market price. These movements suggest that user engagement and network transactions strongly influence token valuation.
Accordingly IntoTheBlock According to data, a majority of MATIC holders are incurring losses. Currently, 98.44% of all addresses are out of the money. This means that these investors bought their tokens at prices above the current price. Conversely, only 1.05% of investors are in the money. They bought MATIC at prices below today’s price, showing profit potential. This data highlights the high volatility and speculative nature of cryptocurrency markets.
MATIC Price Prediction: Possible Drop to Support Levels
The cryptocurrency market has seen significant volatility over the past 24 hours. At the time of reporting, the MATIC Price was trading at $0.4057 during European trading hours, down slightly by 0.22% from the previous day. During the daily trading session, there was a high of $0.4074 and a low of $0.393, indicating market volatility.
Polygon is experiencing a downtrend; if this momentum continues, the value of MATIC could drop to a support level of $0.38. If the selling pressure increases, the price could further drop to $0.35.
The 4-hour technical indicators for the MATIC price show a subtle market movement. The Moving Average Convergence Divergence (MACD) indicator shows a mixed signal. Although the MACD line is above the signal line, both lines are close to the zero axis, indicating a lack of strong momentum in either direction. The Relative Strength Index (RSI) is currently at 44, indicating a neutral trend.
On the upside, a break above the $0.42 resistance could indicate a possible bullish reversal. Such a move could lift MATIC towards a critical resistance at $0.45. The Layer 2 If the positive momentum continues, the token could rise above $0.55.
Frequently Asked Questions (FAQs)
MATIC is used for payments, transaction fees, and network management within Polygon.
Developers can use Polygon to build various blockchain applications such as rollup chains and standalone chains.
Polygon combines the security of Ethereum with the scalability of multi-chain systems like Polkadot and Cosmos.
Coingape Staff
CoinGape is comprised of an experienced team of homegrown content writers and editors who work around the clock to cover news around the world and present it as facts, not opinions. CoinGape writers and reporters contributed to this article.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Conduct market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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