Polygon (MATIC) Whales Are Making Moves: How Will the Price React?
The price of Polygon (MATIC) has hit its lowest point in 2023, hovering around $0.55. However, recent on-chain data reveals that whale investors have started to make significant moves in the market. So, what can we expect for MATIC price in the coming days?
MATIC Whales Entered $25M Buying Spree After Founder’s Update
After Polygon Co-Founder Nailwal Sandeep issued an important update on the technical upgrade from MATIC to the new POL token, whale investors reacted positively. In just 24 hours, large institutional investors started accumulating MATIC tokens, adding 47 million tokens to their holdings between August 29 and September 4. This buying spree suggests that the recent update on the POL token migration has boosted the whales’ confidence. Their cumulative wallet balances have reached an all-time high of 402 million MATIC. However, it remains uncertain if retail investors will follow suit.
Polygon Retail Investors Are Still Missing in Action
While whale investors are making millions of dollars worth of acquisitions, Polygon retail network participants are not sharing the same optimism. The number of daily Active Addresses on the Polygon network has been steadily declining since the altcoin market crash on August 17. This decline indicates that retail investors have been hesitant to engage with MATIC. The price of MATIC has historically been closely correlated to movements in Daily Active Addresses, so if retail investors don’t join in soon, the price may continue to drop.
MATIC Price Prediction: Consolidation Below $0.60
Without a significant increase in retail demand, it is unlikely that MATIC’s price will surpass $0.60 in the near future. However, the buying spree by whale investors may prevent a major downswing below $0.54. As a result, MATIC is expected to consolidate around the $0.60 range. The data also shows that there is significant resistance at the maximum price of $0.59, which could hinder a price rally. If the bullish whales can overcome this resistance, the price may reach $0.65. On the other hand, if retail demand continues to decline, the price could drop below $0.50 for the first time since May 2022.
Hot Take: Watch Out for Whale Moves, but Keep an Eye on Retail Demand
As whale investors accumulate MATIC tokens, it’s important to pay attention to their moves. Their confidence in the project can have a significant impact on the price. However, it’s equally important to monitor retail demand. If retail investors don’t show interest in MATIC, the price may continue to decline. So, keep an eye on both whale activity and retail participation to get a clearer picture of where MATIC’s price is heading.
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