Bitcoin has rallied over the past day after gaining momentum on the Valkyrie Ethereum ETF news and pulling MATIC price higher. This has led to a rare green day for the cryptocurrency market in as many months, but MATIC may not be able to hold on as well as other altcoins as the whales make their move.
Whales move tens of millions into exchanges
The first notable whale transaction involving MATIC was highlighted by Lookonchain on Wednesday. The transaction involved 10.78 million tokens worth approximately $5.5 million at the time.
Mostly, it was the destination of these tokens that was important, which turned out to be the crypto exchange Binance. It seemed that the whale had deposited the tokens to sell them, as the MATIC price took a quick dip of 3% after the deposit.
A whale has deposited a total of 10.78 million water $MATIC ($5.5 million). #Binance in the last 26 hours and the price of $MATIC decreased by 3%.
The whale currently has 2.72 million $MATIC($1.37 million) left.https://t.co/C4VNQ1QDq9 pic.twitter.com/8JcoySfsRP
— Lookonchain (@lookonchain) September 27, 2023
MATIC would later recover and move into the green, a price increase that seemed to have prompted more whales to take advantage of the situation. Over the course of the day, whale transaction tracker Whale Alert reported multiple whale transactions, all of which were millions of dollars worth of tokens destined for exchanges.
The next major transaction was one that transferred 11,000,888 tokens worth $5.7 million to the Binance exchange. Another transaction followed shortly after with the exact number of MATIC tokens also heading to the Binance exchange.
Within the same hour, the whale tracker also reported that 15,826,267 million MATIC had been re-transferred to Binance. This transition brought with it approximately $8.2 million worth of tokens. This indicated that whales wanted to dump large parts of their belongings.
???? 15,826,267 #MATIC (8,199,632 USD) transferred from unknown wallet to #Binancehttps://t.co/fgGpVb7id0
— Whale Alert (@whale_alert) September 28, 2023
MATIC price resting at $0.52 | Source: MATICUSD on Tradingview.com
MATIC price may experience a decline
The massive amounts of tokens shifting to centralized exchanges could mean the whales start divesting some of their holdings to avoid further losses. In this case, it is not far-fetched to say that the altcoin’s rally over the past day could be short-lived. Such a decline could see MATIC price easily fall back to $0.51 while bears retest the support at $0.5.
However, all hope is not lost for MATIC price as the coin still shows some bullishness. As a TradingView analyst notes, if the altcoin can break out of its current descending triangle, its price could rise by more than 50%.
MATIC could see an upside to $0.9 | Source: Tradingview.com
The analyst also estimates the first target of this rally at the $0.9 level, which is an almost 100% increase in price from here. But MATIC will continue to face opposition from bears, making it a tricky situation.
At the time of writing, MATIC price is resting above $0.5232, with a gain of 3.06% on the last day.
Featured image of Cryptopolitan, chart from Tradingview.com