Posted:
- MATIC fell to $0.85 and then recovered after the Polygon team sold some tokens.
- The price could rise to $0.96 if the bullish momentum continues.
The polygon [MATIC] Foundation sent 9 million tokens to Binance [BNB]according to a recent reveal from Spot On Chain.
According to the on-chain tracking platform, this was the second time in the past five days that Polygon has removed MATIC. The first transaction was a transfer of $13.2 million to the same exchange.
Wallet 0x57f (linked to #Polygon Foundation) deposited 9M $MATIC ($7.75 million). #Binance ~11 hours ago.
In total, there are two wallets linked to the Polygon Foundation that deposit 15.5 million $MATIC Unpleasant #Binance at ~$0.85 ($13.2 million) in the last 5 days.$MATIC price dropped slightly after… pic.twitter.com/byEOI57ldA
— Spot On Chain (@spotonchain) February 14, 2024
The most recent transaction was valued at $7.75 million. AMBCrypto observed MATIC’s price after the trades and noticed that it subsequently fell from a high of $0.88 to $0.85.
However, press time data from CoinMarketCap showed that the token had been recovered.
The sale won’t stop buyers
When such large transfers occur, the price of the cryptocurrency typically falls due to selling pressure.
Therefore, MATIC’s quick recovery indicated that the buying pressure was greater than anything the sellers were doing. If this was the case, it means other things happened in the chain.
This led us to check Polygon’s volume. With the help of Santiment data we have noticed that the volume had increased. At the time of writing, the value had risen to 361.49 million.
In addition to the price action, rising volume could serve as a force for direction.
Source: Santiment
Polygon’s price of $0.88 meant its value was back on the upside. Therefore, rising volume and price could trigger another jump.
If this is the case, MATIC could add another 10% gain. If this is the case, we could see MATIC trading around $0.96 in the coming days.
But if volume increases while price rises, the uptrend may become weak. In this situation, MATIC’s price could fall and a drop to $0.80 could be an option.
But going by current market sentiment, it seems the bullish bias can be validated.
Conviction of MATIC’s potential climbs
In addition to the short-term prospects, AMBCrypto offers watched against the total number of MATIC holders. As of January 14, the number of MATIC holders stood at 63.71 million.
But by Valentine’s Day, that number had grown to 67.47 million. Such a rise suggests that more market participants are convinced that the token would perform well in the long term.
However, the weighted sentiment was -0.688. Weighted Sentiment uses the unique social volume to determine the experience surrounding a project.
So the negative outcome suggests that market players felt that MATIC’s uptrend might not last long – at least based on discussion and commentary.
Source: Santiment
Read Polygon [MATIC] Price forecast 2024-2025
In the future, MATIC’s price could rise above $0.90. If there are more transfers to exchanges on the Polygon Foundation side, the value could drop.
However, a decrease in currency inflows could increase MATIC’s chances of reaching $1.