Altcoins
Whales love MATIC, but is it enough for the altcoin price?
- Whale transactions on the Polygon network have increased due to price fluctuations
- Despite Institutional Interest, MATIC Price Could Drop Below $0.47
Polygon [MATIC] Whale interest was discussed a few days ago due to an increase in transactions. Typically, transactions valued at $100,000 or more are considered whale transactions.
According to IntoTheBlock, MATIC whale transactions have increased by over 1,000% and have been valued at over $100 million. When events like this happen, it’s a sign of institutional interest in a token. And most of the time, it affects the token’s price.
Over $100 Million Traded, But MATIC Remains Sober
For MATIC, the price was $0.49 at press time. This represents a 4.19% decline in the last 24 hours. However, earlier in the week, the token’s value spiked to $0.52 on the charts. Therefore, the decline implies that holders of the token have booked profits from the initial surge.
Hence the question: will the price of MATIC increase if another round of interest in whales Let’s start by looking at market value versus realized value (MVRV).
This ratio uses profitability to measure whether a cryptocurrency has reached its peak or is at its bottom. In most cases, the higher the average profits, the closer a coin is to its peak.
However, when there are a lot of unrealized lossesThis means that it is close to the bottom. At press time, MATIC’s 30-day MVRV ratio was -8.32%. This simply means that if holders of the cryptocurrency sell at the current price, the weighted return will be a loss of 8.32%.
Source: Santiment
Considering the performance of other altcoins, MATIC could be considered near its bottomIf the price turns back again, the ratio will decrease and could offer better buying opportunities.
However, besides the above ratio, the In/Out of Money Around Price (IOMAP) is a factor that can indicate whether the price of MATIC will increase or not. The IOMAP ranks addresses based on the price they were purchased at and whether they are in profit or not.
No more respite?
Therefore, this metric can act as support or resistance. When there are a large number of addresses purchased at a given price, the region will be the support or resistance.
If the largest addresses are out of the money, it would be resistance. On the other hand, if they are in the money, it would be support.
According to IntoTheBlock, 6,250 addresses purchased 42.67 million MATIC at an average price of $0.51. This cohort is currently Out of money. On the other hand, 1,060 people bought 58.97 million tokens at around $0.49.
Source: IntoTheBlock
Realistic or not, here it is MATIC Market Cap in terms of ETH
Given that a higher number of addresses appeared to be positioned above the press time price, this meant that MATIC faces resistance on the charts. Therefore, there is a chance that holders at $0.51 will decide to break even once the price returns to that level.
If this happens, MATIC could retrace and the next drop could be below $0.48.