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Why MATIC’s price action failed to register more upside in last 24 hours

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Why MATIC's price action failed to register more upside in last 24 hours
Source: Pixabay


MATIC holders might be in for an interesting week ahead especially now that the Polygon-native token is attracting crypto whales.

The latest WhaleStats analysis revealed that MATIC was among the top 10 most acquired digital coins by ETH whales.


Here’s AMBCrypto’s price prediction for MATIC


According to the whale tracking site, the whale fear and greed index is now leaning towards the greed level. But does this indicate that MATIC’s price is headed up?

Well, not necessarily. It turns out that buying whales were not the only participants in the last 24 hours. The number of buying whales and selling whales was equally matched at 21.

MATIC’s buying volume was notably lower at $584,000 compared to the $607,000 selling volume, at press time. This may explain why the crypto token’s price action failed to register more upside in the last 24 hours compared to its bullish performance on 23 October.

MATIC traded at $0.87 at press time, with its daily candle indicating a 2.65% drop. This performance was more consistent with the higher selling volume.

MATIC price action

Source: TradingView

The token demonstrated higher relative strength in the last four days, as indicated by the RSI. Its MFI also pivoted in favor of the upside.

Enough bullish momentum backed by healthy whale activity may push MATIC near the overbought zone towards mid-week. This outcome will depend on whether whales will continue accumulating.

Uncertain fate in turbulent waters

A look at MATIC’s on-chain metrics confirmed that whale activity did register a significant uptick in the last 24 hours. Whale transactions count registered a sizable increase in addresses holding over $100,000 and $1 million in the last 24 hours.

MATIC whale transaction count

Source: Santiment

The above observation aligns with the WhaleStats report. In addition, MATIC’s daily active addresses registered the highest weekly levels after a strong return of activity in the last two days.

MATIC daily active addresses

Source: Santiment

The increase in the number of daily active addresses confirms that retail traders are also getting in on the action. However, neither the whale transaction count nor the active addresses metrics provided an accurate distinction between the buying and selling pressure.

Fortunately, the supply distribution metric provides a better snapshot of whale activity.

According to the supply distribution, addresses holding more than 10 million MATIC increased their balances by 0.06% in the last 24 hours.

This is noteworthy because this whale category currently controls the lion’s share of MATIC’s supply.

MATIC whale activity

Source: Santiment

Furthermore, addresses holding between one million and 10 million MATIC tokens trimmed their balances by 0.07% in the last 24 hours.

This category controls the second-largest share and likely contributed to the observed sell pressure. Undoubtedly, these two groups have the largest impact on MATIC’s price action.

Conclusion

Since the largest whales are bound to influence the rest of the market, investors should keep an eye on the supply distribution.

A pivot from the second-largest whale would likely trigger more upside and a potential short-term rally into overbought territory.

On the other hand, the downside is to be expected if the largest whales start selling.

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Michael is a full-time journalist at AMBCrypto. He has 5 years of experience in finance and forex and more than two years as a writer in the crypto and blockchain segments. Michael's writing at AMBCrypto is primarily focused on cryptocurrency market news and technical analysis. His interests include motorcycles and exotic cars.

Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.