The price of MATIC is currently experiencing a lack of buying confidence amid a pre-halving correction, intensifying short positions and leading to a new low for the year. Despite this, analysts anticipate a potential surge in the short term as large investors accumulate more tokens during this decline. However, a key on-chain indicator poses challenges to the price’s upward momentum.
Bitcoin’s recent dip to $60K triggered selling pressure across the altcoin market, affecting MATIC’s price. Nevertheless, smart investors view this downturn as an opportunity to accumulate MATIC at discounted rates. Whales, or large holders, have been notably active during this period, with a significant accumulation of MATIC observed, including one notable investor acquiring nearly 2 million tokens. The rise in the number of wallets holding significant amounts of the altcoin further highlights this accumulation trend.
There has been a notable increase in large transactions exceeding $100,000, signaling a concerted effort by whales to capitalize on the market downturn. Data indicates a surge in the volume of large transactions during MATIC’s decline, suggesting strategic accumulation by whales during price dips. Analysts anticipate that MATIC has established strong support levels, and the recent buying activity by whales could potentially send the price to resistance.
Expect MATIC Price Surge Despite Negative Netflow (Credits: Crypto Adventure)
However, the Netflow metric, which has surged above the positive region, might limit the sudden surge in MATIC price by indicating increasing inflow compared to outflow. This metric could create extra selling pressure near peak prices, potentially impacting price movement. Despite this, MATIC price currently trades at $0.685, with buyers defending the $0.6 level, indicating potential buying interest at lower price levels.
Bulls are now eyeing a potential recovery, although they may face significant selling pressure around the descending resistance line. In the event of rejection from the resistance line, the MATIC/USDT pair could revisit the $0.6 support level and potentially decline further to $0.5, with a breach below signaling a drop to $0.35. However, bullish strength would be indicated by a breakthrough above the resistance line, potentially sending the price toward $1.
