In a significant turn of events, the MATIC price trend took a bearish dive as $20 million worth of MATIC tokens flooded exchanges. FTX exchange and two wallets affiliated with the Polygon Ecosystem Growth collectively deposited a substantial 28 million MATIC tokens, intensifying the selling pressure on Polygon’s native token.
The bearish momentum gained traction when a Polygon wallet executed a massive transfer of 217 million MATIC tokens to 70 different wallets on November 15. This influx of tokens to various wallets contributed to the heightened selling pressure, resulting in a 10% weekly loss for MATIC holders.
Polygon (MATIC) has experienced a notable increase in value over the past seven days, currently trading at $0.7343. This reflects an impressive 8.42% gain within the week, showcasing positive momentum for the cryptocurrency. With a market cap of $6,810,473,572, MATIC holds the 14th position in the cryptocurrency market hierarchy.
The trading volume over the last 24 hours stands at $382,837,818, placing MATIC at the 17th position in terms of the daily trading volume. The volume-to-market cap ratio, a key indicator of market liquidity and activity, is at 5.57%, suggesting a moderate level of trading activity relative to the overall market capitalization.
Analyzing the pivot levels, the classic and Fibonacci levels presented a challenging outlook for MATIC, with resistance points at 67.16, 68.88, and 69.74. Meanwhile, support levels at 64.59, 63.74, and 62.02 hinted at the potential for further downside. The Camarilla levels, indicating intraday levels, also reflected a delicate balance, with 66.31 as the pivot point.
Delving into the on-chain metrics, the Relative Strength Index (RSI) stood at 50.01, signaling a neutral stance. While the Moving Average Convergence Divergence (MACD) at 2.93 indicated a bullish trend, the Stochastic oscillator at 30.63 presented a bearish sentiment. The Rate of Change (ROC) and the Commodity Channel Index (CCI) leaned towards the bullish and neutral territories, respectively.
Notably, the Williamson Percentage R (W%R) plunged to -98.5, signaling an oversold condition, potentially indicating a market ripe for a rebound. However, the Money Flow Index (MFI) at 75.73 hinted at bearish sentiment, suggesting caution among investors. Volatility, as measured by the Average True Range (ATR) at 4.49, remained relatively low, while the Average Directional Index (ADX) stood at 44.56, indicating a strong trend in play.
This recent bearish development raises concerns among investors, and the market is expected to closely monitor further developments. As MATIC faces increased selling pressure, traders and investors are advised to exercise caution and closely follow technical indicators for potential market reversals.
In conclusion, the MATIC token’s bearish turn, fueled by substantial token transfers to exchanges, emphasizes the need for vigilance within the crypto community. As market dynamics continue to evolve, stakeholders will be closely watching for potential shifts in sentiment and trading patterns.
