Polygon Price Under Pressure as $MATIC Whales Move Funds to Exchanges

The price of Polygon’s MATIC token has fallen around 15% this week, making it one of the poorest performers among major altcoins. MATIC is currently trading around $0.8, down from highs above $1 in late December. This steep decline seems to be driven in part by whales moving significant funds to centralized exchanges.

According to on-chain analytics provider Spot On Chain, Celsius Network recently deposited nearly 26 million MATIC tokens worth over $21 million to Binance and Crypto.com as the price dropped.

This movement of funds to exchanges is often viewed as a precursor to selling, as traders seek to liquidate holdings. When major holders sell large portions of their tokens, it can put significant downward pressure on the price.

Technically, MATIC looks vulnerable to further declines in the short term. Key support sits around $0.72, which aligns with the 4.236 Fibonacci retracement level from the November lows to December highs. There is also technical support around the crucial 200-day moving average near $0.69. If these levels fail to hold, MATIC could easily test the psychological $0.50 level.

The relative strength index (RSI), a key momentum indicator, shows MATIC as significantly oversold across all timeframes. RSI levels are ranging between 30-40 on the daily, weekly, and monthly charts. While oversold conditions can persist in bearish markets, MATIC looks poised for at least a minor relief rally once selling pressure subsides.

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So, the technical outlook and on-chain activity point to elevated risks for MATIC in the near term. Investors should keep a close eye on the $0.72 support zone and watch for signs of a trend reversal on the higher timeframes. If the whales stop depositing to exchanges, that could mark the end of the current capitulation.

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Felix Küster
Felix Küster

Felix Kuester works as an analyst and content manager for Captainaltcoin and specializes in chart analysis and blockchain technology. He is also actively involved in the crypto community - both online as a central contact in the Facebook and Telegram channel of Captainaltcoin and offline as an interviewer he always maintains an ongoing interaction with startups, developers and visionaries. The physicist has couple of years of professional experience as project manager and technological consultant. Felix has for many years been enthusiastic not only about the technological dimension of crypto currencies, but also about the socio-economic vision behind them.