Polygon (MATIC) price is facing a possible correction due to increasing bearishness among investors.
This sentiment has become so strong that even whales are choosing to reduce their holdings and book profits.
Polygon investors sell
MATIC price is sending a bearish signal and investors are reacting rather strongly to it. This can be seen in the significant decline in network growth. This indicator measures the rate at which new addresses are formed on the network, indicating the overall traction of a project among investors.
Polygon’s network growth is currently at its lowest in seven months. This means that adoption of MATIC is taking a huge hit.
Read More: How to Buy Polygon (MATIC) and Everything You Need to Know
However, it is not only potential investors who are skeptical, but also existing MATIC holders. Large wallet holders are dumping their holdings, with more than 19 million MATIC worth more than $16 million being moved to exchanges. Most of these addresses are whales holding between $10,000 and $100,000 worth of MATIC.
A decline in supply from these investors is seen as a key signal as it nullifies any chance of recovery.
MATIC price prediction: watch out for the drop
MATIC price is currently in a sustained downward trend and is approaching the important support at $0.7489. Considering the aforementioned market signals, it is likely that the Polygon native token will lose this support.
As a result, MATIC price will decline by 11.63% to test the support at $0.7422. The support level of $0.7000 will be tested if the altcoin falls below it.
However, DeFi tokens are also stuck in a downward wedge, which could lead to a reversal of results. A falling wedge is a bullish chart pattern characterized by falling highs and lows that converge into a tighter range, usually indicating a possible bullish reversal.
Read More: Polygon (MATIC) Price Prediction for 2024/2025/2030
So, if MATIC price records a reversal and reclaims $0.8876, this could invalidate the bearish theory.
disclaimer
In accordance with Trust Project guidelines, this price analysis article is provided for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions may change without notice. Always do your own research and consult with a professional before making any financial decisions. Our Terms of Use, Privacy Policy and Disclaimer have been updated.