• Polygon’s MATIC token has seen a decrease in price of more than 14% over the past week and 5% in the last 24 hours.
• A key metric suggests that there might be a trend reversal in the coming days, with RSI being oversold.
• Santiment’s data reveals that selling pressure on MATIC tokens is increasing due to large amounts of tokens being transferred from whale wallets to exchanges.
Selling Pressure on MATIC Increases
Santiment’s tweet posted on 7 June revealed that the big players in the crypto space were actually selling their MATIC holdings. About 115 million MATIC were moved to exchanges in one shot. As per the tweet, the latest setback appeared to be a $95 million transfer from a whale’s cold wallet to Binance. The increase in selling pressure resulted in a further price drop. At the time of writing, MATIC was trading at $0.7627 with a market capitalization of over $7 billion, making it the 10th largest crypto. Santiment’s chart suggested that the selling pressure was still on. Polygon’s supply on exchanges increased while its supply outside of exchanges went down. Additionally, the supply held by top addresses also declined, suggesting that investors were selling.
RSI Suggests Trend Reversal
While the aforementioned metrics looked bearish, CryptoQuant’s data revealed a bullish metric – Relative Strength Index (RSI). When RSI becomes oversold, it is generally followed by an increase in buying pressure. However, apart from RSI, other metrics continued to be bearish and thus it remains unclear if this will lead to any significant upward movement for MATIC’s price or not .
Reasons Behind Decoupling From Market Trends
Despite several cryptocurrencies rebounding after a price correction on June 7th, Polygon remained unaffected and decoupled itself from market trends which could possibly suggest reasons behind its low prices and negative sentiment around itself lately.. The possible reason for this could be attributed to heavy selling pressures as mentioned earlier or maybe something else entirely different such as high levels of uncertainty among investors or lack of sufficient liquidity etcetera .
Conclusion
Polygon [MATIC] has seen decreasing prices despite cryptocurrencies rebounding after corrections due mainly to heavy sales pressures from whales coupled with other factors like lack of liquidity and uncertainty among investors which are leading towards its current downtrend . Although an RSI indicator suggests possible trend reversal , only time can tell if it will happen or not .
Takeaways
• Polygon’s [MATIC] prices have decreased by more than 14% over past week and 5% within 24 hours due to heavy sale pressures leading towards current downtrend . • Relative Strength Index (RSI) suggests possible trend reversal however other indicators remain bearish . • Reasons behind MATICS decoupling from market trends include higher sales pressures , uncertainties amongst investors , lack of liquidity etcetera .