MATIC price is currently eyeing a potential rally to 0.65, fueled by recent significant movements within the Polygon network. With MATIC trading around crucial technical levels, the recent transfer of $8.1 million worth of MATIC tokens to Binance exchange by the Polygon Foundation has added another layer of intrigue.
This large-scale transfer comes just as whale activity increases and the network prepares for a major token migration to POL. As these developments unfold, investors are keenly watching how these factors will impact the Polygon price trajectory in the coming weeks.
Whale Movements Suggest Imminent MATIC Price Rally
Polygon price is slowly turning bullish after breaking out of a three-month bearish trend. Despite losing 3% over the last 24 hours, the price of MATIC is currently trading at $0.5065, and support is being found at this level. Investors are hopeful for a potential bounce from this point, which could propel the price up by 25% to $0.65, ideally before the upcoming migration to POL.
Recently, the Polygon network has seen a surge in whale activity. With only about a week remaining until the anticipated token migration, many investors may be looking to acquire MATIC at lower prices.
On August 27, Santiment recorded a spike in whale transactions, noting nine trades involving large investors holding over $100,000 worth of MATIC. This activity coincided with MATIC price hitting $0.5016, its lowest price since the beginning of the week, suggesting that whales are accumulating the token in preparation for the upcoming changes.
Additionally, data from IntoTheBlock shows large holders’ netflow was positive on August 26 and has been steadily rising since August 24. This confirms the observation on Santiment that whales may be accumulating MATIC tokens.
Is Polygon Dumping MATIC Ahead of Migration?
The Polygon Foundation transferred 15.49 million MATIC ($8.1 million) to Binance over the past five days, according to data from Spot on Chain.
The wallet still has 13 million MATIC remaining but is under staking and has been holding the tokens since April 2023, when it received them from the Polygon Fondation contract.
It is still unclear why a Polygon Foundation-related wallet would send tokens to Binance. However, it is not a good sign, as depositing large sums of tokens in exchanges generally signals a potential sell-off.
MATIC Price Forecast: $0.65 In Sight If This Level Holds
MATIC is currently sitting on the 50-day exponential moving average (EMA), with sights on the 200-day EMA, currently 25% above it.
The Relative Strength Index (RSI) is bouncing off its 14-day SMA, indicating strong bullish momentum is still in place. At 56.34, there is still much upside room to move for the MATIC price to reach $0.65.
Traders should closely watch the Polygon price key support level at $0.5065, as a sustained hold could unlock the potential for significant gains in the lead-up to the upcoming migration to POL.
Frequently Asked Questions (FAQs)
Whale accumulation typically suggests that large investors are anticipating future price increases. With the upcoming migration to POL, many investors may be looking to purchase MATIC at lower prices, leading to increased whale activity.
Data from IntoTheBlock shows a positive netflow for large holders since August 24, indicating that whales are buying more MATIC than they are selling. This supports the view that whales are accumulating MATIC in anticipation of potential price rallies.
MATIC is currently positioned on the 50-day exponential moving average (EMA) with a target of reaching the 200-day EMA, which is approximately 25% higher. So MATIC price can rally to $0.65.
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Evans Karanja
Evans Karanja is a content writer and scriptwriter with a focus on crypto, blockchain, and video gaming. He has worked with various startups in the past, helping them create engaging and high-quality content that captures the essence of their brand. Evans is also an avid crypto trader and investor, and he believes that blockchain will revolutionize many industries in the years to come. When he is not writing, you can find him playing video games or chasing waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
