MATIC price faces lack of buyer confidence as pre-halving correction strengthens short positions. The current market correction has had a significant impact on the price of MATIC, resulting in a new low for the year. However, as large investors now accumulate more tokens during this decline, analysts expect a near-term rise. Nonetheless, a key on-chain indicator could challenge the bullish price momentum.
Whales Sense “Buy the Dip” Opportunity
Bitcoin's recent drop to $60,000 has triggered significant selling pressure in the altcoin market, weighing on the price of MATIC. However, in a market slowdown, savvy investors see an opportunity to accumulate MATIC at discounted rates. It is worth noting that large holders, commonly referred to as whales, have been particularly active during this period of market decline.
Importantly, there has been a considerable increase in MATIC accumulation by whales, with one notable investor acquiring almost 2 million tokens. This accumulation trend is further highlighted by the increase in the number of wallets containing significant amounts of altcoin, ranging from 1,000 to 10 million coins.
Additionally, there has been a notable increase in large transactions exceeding $100,000, signaling a concerted effort by whales to take advantage of the market downturn. According to data from IntoTheBlock, large transaction volume increased from a low of $28 million to over $130 million. Notably, this metric increased during MATIC's decline, but then retreated following a rise in MATIC price, indicating strategic accumulation by whales during price declines.
Therefore, analysts expect MATIC to have established strong support levels, and recent whale buying activity could potentially send the price towards resistance.
However, the Netflow metric could defend the sudden rise in MATIC price as it has breached the positive region, suggesting increased inflows rather than outflows. The metric currently stands at 3.5 million MATIC, which could create additional selling pressure as peak prices approach.
What’s next for the MATIC Prize?
MATIC price saw a sharp decline below the crucial $0.9 support level, forming a descending bearish trend. However, buyers strongly defend a decline below the $0.6 level. Currently, MATIC price is trading at $0.685, down over 1.4% in the last 24 hours.
However, there is slight hope for bullish investors as the price has managed to hold around the EMA20 trendline, indicating buying interest at lower price levels. The bulls are now poised to begin a potential rally, although they are likely to encounter significant selling pressure around the descending resistance line.
In case of rejection of the resistance line, the MATIC/USDT pair could revisit the $0.6 support level and then potentially drop further to $0.5. A break below this level may result in a decline to $0.35. The first indication of bullish strength would appear with a breakout above the resistance line, sending the price back towards $1.