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- Millions of MATIC were sent to Coinbase, but the token resisted a nosedive.
- If buying momentum increases and circulation follows suit, MATIC could reach $1.
In three separate posts on X (formerly Twitter), Whale Alert announced that there are more than 55 million Polygon [MATIC] tokens have been sent to Coinbase [COIN] stock exchange. The whale tracking system noticed that the transfers were coming from unknown addresses.
🚨 19,896,435 #MATIC (16,443,201 USD) transferred from unknown wallet to #Coinbasehttps://t.co/dCSA4N6H3m
— Whale Alert (@whale_alert) November 12, 2023
However, the high volume and rapid succession in which the tokens were shipped raised concerns. When tokens are sent to exchanges from external sources, there is usually a good chance that the intention is to sell.
🚨 17,655,976 #MATIC (14,591,597 USD) transferred from unknown wallet to #Coinbasehttps://t.co/SlO3MwhixI
— Whale Alert (@whale_alert) November 12, 2023
No amount of pressure can pull MATIC down
Moreover, if a large number is involved, the sales (if eventually done) will negatively impact the price. For MATIC, the transactions have not been able to bring the price down. At the time of writing, CoinMarketCap showed the token exchanging hands at $0.83.
This value represented an increase of 3.09% in the last 24 hours and an increase of 63.25% in the last 30 days. MATIC’s move was similar to a number of altcoins, which trended upward.
But on that note, there has been a lot of whale activity on the Polygon network before. Basically AMBCrypto discussed how the jump in whale accumulation translated into a rise in the token price.
Using the one-hour MATIC/USD chart, the rising price of $0.78 in the early hours of November 12 indicated that there was more purchasing power than the potential sell-off. This was also clearly visible in the Accumulation/Distribution (A/D) indicator.
The A/D line reached 1.34 billion, indicating strength upwards outbreak for MATIC. At the time of writing, there was a slight decline in the token value due to a mild distribution.
However, if the sell orders only last a short period and accumulation takes over, a MATIC profit of $0.90 may not be out of the question.
Source: TradingView
MATIC aims for a new peak
In addition to the A/D, the Moving Average Convergence Divergence (MACD) has also entered the positive region. This move indicates increasing upward momentum and confirms the A/D indications.
When it comes to circulation, AMBCrypto’s on-chain analysis on Santiment showed that there was an increase in the number of MATIC tokens being used between November 5 and 9. A closer look at the price action showed that MATIC jumped from $0.69 to $0.85 during this period.
Read Polygon [MATIC] Price prediction 2023-2024
This was not the case where tokens were released into the circulating supply. So there was no chance of MATIC’s value falling given the widespread buying in the market. Then circulation dropped.
Source: Santiment
But as of this writing, the number of MATIC circulating on the Polygon network has increased to 119.96 million. Combined with continued accumulation, if circulation returns to November 9 levels, MATIC could be on the table for a ride to $1.