Altcoins
Whales Love MATIC, But Is It Enough For The Altcoin Price?
- Whale transactions on the Polygon network increased due to price fluctuations
- Despite institutional interest, MATIC price could drop below $0.47
Polygon [MATIC] Whale interest has been a hot topic a few days ago due to a spike in transactions. Typically, transactions valued at $100,000 or more are considered whale transactions.
According to IntoTheBlock, MATIC whale transactions have increased by over 1000% and have been valued at over $100 million. When things like this happen, it is a sign of institutional interest in a token. And more often than not, it impacts the price of the token.
Over $100 Million Traded, But MATIC Remains Sober
For MATIC, the price was $0.49 at press time. This constituted a 4.19% decline in the last 24 hours. However, at the beginning of the week, the value of the token rose to $0.52 on the charts. Therefore, the decline implies that the token holders booked profits from the initial increase.
So, the question is: will the price of MATIC increase if there is another round of interest in whales appears? Let’s start by examining the market value to realized value (MVRV) ratio.
This report used profitability to measure whether a cryptocurrency has peaked or is at its lowest. In most cases, the higher the average profit, the closer a token is to its highest.
However, when there are many of them unrealized lossesmeans it is near the bottom. At press time, MATIC’s 30-day MVRV ratio was -8.32%. This simply means that if holders of the cryptocurrency sell at the current price, the weighted return will be a loss of 8.32%.
Source: Santiment
Considering the performance of other altcoins, MATIC could be considered near its bottomIf the price retraces again, the ratio will decline and may offer better buying opportunities.
However, apart from the above ratio, In/Out of Money Around Price (IOMAP) is a factor that can tell whether the MATIC price will rise or not. IOMAP ranks addresses based on their purchase price and whether they are in profit or not.
Is there no more respite?
Therefore, this metric can act as support or resistance. When there are a large number of addresses that have bought at a price range, the region will be support or resistance.
If the larger addresses are out of the money, it would be a resistance. On the other hand, if they are in the money, it would be a support.
According to IntoTheBlock, 6,250 addresses have purchased 42.67 million MATIC at an average price of $0.51. This cohort is currently out of moneyOn the other hand, 1,060 purchased 58.97 million tokens at around $0.49.
Source: IntoTheBlock
Realistic or not, here it is MATIC Market Cap in ETH
Since a greater number of addresses appeared to be positioned above the price at press time, this meant that MATIC face the resistance on the charts. Therefore, there is a possibility that holders at $0.51 may decide to break even once the price revisits the level.
If this happens, MATIC could retrace the trend and the next drop could be below $0.48.