Polygon (MATIC) has managed to reclaim the $0.60 territory after erasing its losses from September. The upcoming faceoff between retail investors and whale investors on the Polygon network could have an impact on MATIC’s price action in the coming weeks. In September, Polygon announced its migration from MATIC to a new POL token and unveiled a Governance Council for the proposed Polygon 2.0. This announcement attracted a record number of new users to the network, with 137,650 new MATIC addresses created within 24 hours of the council’s announcement.
However, despite the recent price breakout and increased retail market confidence, whale investors on the Polygon network have continued their selling frenzy. Their cumulative balances have decreased by 50 million MATIC tokens over the past two months, putting downward pressure on the price. If this negative disposition from whale investors continues, it could question the sustainability of MATIC’s price breakout.
From an on-chain perspective, MATIC’s price may struggle to break above $0.70 without significant buying activity from whale investors. There is a significant sell-wall at $0.65 that could hinder the price rally. On the other hand, if new joiners have enough buying power to overcome this resistance, they could push MATIC’s price towards $0.75 for the first time since July 2023.
Conversely, if bearish whales manage to reverse the price below $0.50, there is initial support at $0.56 that bulls can rely on for a rebound. If this support level is flipped, MATIC’s price could decline towards $0.50.
In conclusion, while there are positive developments surrounding Polygon and its new governance council, the selling pressure from whale investors remains a concern for MATIC’s price outlook in the near term.
Hot Take: Whales’ Selling Frenzy Puts Pressure on MATIC Price Breakout