Binance Delisting MATIC/BUSD Perpetual Contracts and Leveraged Margin Trading Pairs
- Binance will delist MATIC/BUSD perpetual contracts and leveraged margin trading pairs on August 17
- Investors are advised to close out their positions immediately
MATIC Derivative Trading Market Shrinking
- The MATIC derivative trading market has been shrinking since mid-July
- MATIC Open Interest has dropped by 28% from $187 million to $134 million
- A decrease in open interest is a bearish signal, indicating persistent capital outflows
Binance Delisting Could Exacerbate Capital Outflows from MATIC
- 53% of the total MATIC derivatives market is on Binance
- Binance’s delisting decision could weaken the $0.65 MATIC price support level
Negative Social Sentiment Surrounding Polygon Network
- Social sentiment surrounding the Polygon network has been trending negatively since the Binance delisting announcement
- MATIC’s social volume score declined 66% within three days of the announcement
MATIC Price at Risk of Bearish Reversal
- The potential negative impacts of the Binance delisting could lead to a significant bearish reversal
- The In/Out of Money (IOMAP) data suggests MATIC price could drop toward $0.60
- If investors hold firm at $0.62, it could trigger an instant price rebound, but if they exit their positions, MATIC’s price will likely drop below $0.60
Hot Take:
Given the shrinking derivative trading market, the potential exacerbation of capital outflows from MATIC due to Binance delisting, and the negative social sentiment surrounding the Polygon network, it is likely that MATIC’s price could experience volatile downward swings in the coming days. Investors should exercise caution and closely monitor the situation.
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