- Polygon’s exchange offerings increased, while off-exchange offerings decreased.
- While the RSI was oversold, the rest of the indicators supported the bears.
Several cryptocurrencies recovered on June 7 after a price correction, but Polygons [MATIC] actions were different. According to CoinMarketCapthe price of MATIC fell more than 14% and 5% respectively in the past week and the past 24 hours.
Read Polygons [MATIC] Price prediction 202324
Santiment’s latest tweet hinted at a possible reason behind this price trend. However, there was something else to look forward to as a key metric suggested a trend reversal in the coming days.
Selling pressure on Polygon is mounting
Santiment’s tweet posted on June 7 revealed that the major players in the crypto space were actually selling their MATIC holdings. About 115 million MATIC were moved to exchanges at once.
📊 While many assets enjoyed a solid recovery day, $MATIC has recently hit a wall. The latest setback appears to be a $95 million transfer from whale-cold wallet to #Binance as the #10 market cap fell below $0.80 for the first time since Jan. 6. https://t.co/7i2FJI1yIP pic.twitter.com/VHo7FjYV72
— Santiment (@santimentfeed) June 7, 2023
According to the tweet, the latest setback appeared to be a $95 million transfer from a whale’s cold wallet to Binance. The increased sales pressure led to a further drop in prices.
At the time of writing, MATIC was trading at $0.7627 with a market cap of over $7 billion, making it the 10th largest cryptocurrency.
Santiment’s chart suggested that selling pressure was still high. Polygon’s exchange offerings increased, while off-exchange offerings declined. In addition, the supply of top addresses also declined, suggesting that investors were selling.
Source: Sentiment
Is a trend break possible?
While the aforementioned stats looked bearish, CryptoQuant’s are facts revealed a bullish statistic. According to the data, MATICThe Relative Strength Index (RSI) was in an oversold position.
When RSI becomes oversold, it is generally followed by an increase in buying pressure. However, apart from RSI, the other metrics remained bearish.
For example, MATIC’s exchange reserve increased, while daily active addresses decreased. MATIC’s MVRV ratio plummeted sharply. This, coupled with the increase in 1-week price volatility, suggested a further price decline.
Source: Sentiment
The current trend may continue
MATIC‘s social volume has increased, indicating that it has been a topic of discussion lately. However, weighted sentiment fell, meaning negative sentiment around MATIC dominated the market.
Source: Sentiment
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mint glass’ graphic further revealed that Polygon’s open interest showed a slight uptick. An increase in open interest suggests that the current price trend will continue. Therefore, the probability of MATIC‘s price falling further seemed quite likely.