Matic’s price is down today, preceding a brief period of declining whale interest. Is a bearish reversal ahead?
YEREVAN (CoinChapter.com) — Polygon (MATIC) price traded at $0.87 on Nov. 13, after a 5% intraday loss. Notably, the correction occurred after the token peaked at its 6-month high of $0.92 on Nov. 12, following a 27% uptrend in the previous week and a 72% rally in the previous month.
So, why is the Polygon (MATIC) price down today? Let’s check.
Why is MATIC price down today?
Enough MATIC For Whales
According to on-chain data provider Santiment, the previous month’s uptrend was due to frantic whale accumulation. In other words, addresses holding large amounts of the Polygon token started buying more amid the Bitcoin ETF-led crypto market revival.
However, zooming into the Nov. 13 statistics, it is apparent that whales decided to cool off on their greed and took partial profits. For example, addresses holding 10 million – 100 million MATIC (black wave) increased their holdings from 4.9% to 6.8% in early November but stalled the spree in the month’s second week.
Smaller wallets, or sharks, holding 100,000-1 million MATIC (grey) backtracked on accumulation sooner, on Nov. 5. Little shrimp, holding 0-0.001 MATIC (yellow) and 0.001-0.1 (red), haven’t gotten the memo yet, and increased their holdings.
However, given their minuscule share of the circulating supply, their behavior is unlikely to influence the Polygon coin. That somewhat explains why the MATIC price is down today.
High Whale Transaction Holds
Statistics on whale transaction count confirm the cool-off. Notably, the transaction count does not indicate a particular bias and indicates the number of large transactions over $100,000 (red bars on the chart below) and $1 million (yellow bars).
However, paired with the price action’s bearish correction, the high transaction count can indicate sales among MATIC whales.
Another reason why the MATIC price is down today
Polygon Token Deposits to Coinbase Rise
According to Whale Alert, 55 million MATIC coins were sent to the Coinbase exchange Nov. 12-13 in several separate transactions from unknown addresses. Typically, an influx of coins into exchanges indicates the addresses’ willingness to sell, which confirms Santiment’s findings.
Moreover, MATIC’s social sentiment has been declining since early September. While the indicator cannot cause a price decline, holders’ optimism of a bullish continuation, or vice versa, could influence the markets.
Therefore, another reason why MATIC’s price is down today.
