The market is now calm after yesterday’s big ups and downs caused by misinformation about the approval of a spot Bitcoin ETF. Interestingly, many altcoins have recovered from the uncertainty. Currently, MATIC’s price is showing some positive signals according to on-chain data. As more people withdraw their MATIC from the exchanges, it appears that holders are preparing for the price to potentially rise rapidly in the coming hours.
MATIC holders are in accumulation mode
Amid mixed market reactions, MATIC issued a bullish signal, a move that market analysts and investors did not see coming as net flow made an unexpected negative move.
The concept of netflow in the market refers to the difference between the number of tokens going into exchanges and the number going out.
A negative net flow indicates that more MATIC is being withdrawn from the exchanges than is being deposited. This is generally a bullish signal for the token, indicating a decrease in selling pressure and a potential increase in ownership among investors, who may be anticipating a positive price move. The net flow currently stands at -2.58 million MATIC.
Still, concerns about a downward trend are increasing as major investors have recently made substantial moves. The volume of large transactions increased from just $13.6 million to a whopping $43.7 million in just one day, highlighting how these “whale” investors can move the value of MATIC.
Moreover, the trend that usually indicates a positive outlook has disappeared. Large investors are now moving more of their holdings to stock exchanges, with the relevant ratio shifting from -1.85 to 1.96. This change suggests they may be planning to sell their shares, which could test any buying interest down the line. If these whales start selling off their assets, this could essentially drive down the price of MATIC due to increased supply in the market.
What’s next for the MATIC Prize?
MATIC has suffered a slump after failing to break above $0.55. There is hope, however, as the bears have yet to take full advantage of this downturn. This situation indicates a possible absence of aggressive selling when prices are low.
Currently, the bulls are trying to defend a drop below $0.5 as the bears are not retreating easily. If the bulls lose confidence, it could cause a further drop in MATIC price below $0.49, potentially causing a more substantial price drop. If this happens, the next safety nets are expected at $0.42 and then $0.31.
If the bulls want to show a strong reversal from the current scenario, they need to send the price above the 200-day EMA and hold it at that level. Should this happen, MATIC price could initially target a recovery price of $0.6, followed by a further increase to $0.69.