Wallet moves 3M MATIC tokens to exchange – What’s brewing?

• Three million MATICs were recently moved to the Kraken exchange.
• MATIC has declined by over 2% in the last 24 hours.

A wallet that received Polygon [MATIC] a few weeks ago has recently transferred a portion of the assets to an exchange. Did this transaction prompt any reaction from the MATIC token?

Over 3 million Polygon move to exchange

Recent data from Spot On Chain indicates that a significant wallet deposited 3 million MATIC tokens to the Kraken Exchange. Analysis reveals that the value of the deposited MATIC is approximately $2.85 million.

Despite this deposit, the wallet still retains about 16.8 million MATIC, valued at over $16 million.

Notably, this wallet is associated with a ZK rollup network acquired by Polygon in 2021, sparking speculation about whether this deposit marks the start of a sell-off or is a one-time event.

Polygon volume picks up

An examination of the Polygon volume in the last 24 hours on CoinMarketCap revealed an almost 8% increase. Further analysis of the volume trend on Santiment over the past two days showed that the volume reached levels not witnessed in weeks.

On 16th February, the volume rose to around $640 million, marking the highest level since 13th January. At the time of this writing, the volume was around $569 million, signifying a substantial uptick in MATIC trade volume over the past few days.

Source: Santiment

MATIC remains in a strong bull trend

An analysis of the Polygon daily timeframe price chart showed an ongoing uptrend, albeit with occasional downtrends. Despite these fluctuations, the chart revealed the most significant uptrend in recent weeks on 16th February.

MATIC experienced a 6.85% increase, closing the trade at about $0.95. This price level had yet to be reached since around 11th January, and MATIC had significantly declined after that.

At the time of this writing, it was trading at around $0.93, reflecting a decrease of over 2%.

Source: Trading View

 Realistic or not, here’s MATIC market cap in BTC’s terms

Furthermore, this recent price decline has also impacted the Relative Strength Index (RSI).

While the RSI had been moving toward the overbought zone, the recent price drop caused a decline. At the time of this writing, the RSI remained above 60 but below 65.