Introduction
Both FTX and the Polygon team distributed MATIC, leading to a decrease in the token’s value to $0.73. This article examines the recent trends and potential factors that may impact MATIC’s price.
Current MATIC Price Status
If MATIC fails to rebound to $0.75, there is a concern that the price may drop below $0.70. Conversely, if demand increases when MATIC becomes overbought, there may be a reversal in the price trend.
Price Decline Overview
Despite reaching close to $1 in mid-November, the price of Polygon (MATIC) has experienced an 8.25% decrease in the last seven days, currently sitting at $0.73 according to CoinMarketCap data.
Factors Contributing to Decline
The decline in MATIC’s price aligns with the broader trend observed in other altcoins. Additionally, the article highlights factors that suggest the possibility of further declines, including a combination of large sell orders.
Large Sell Orders
Lookonchain, a smart money on-chain tracker, reported that FTX transferred 8 million MATIC tokens (valued at $5.95 million) to Coinbase and OKX on November 28. This transaction, along with other sell-offs by FTX, contributes to potential price volatility.
- FTX’s transfer involved 8 million MATIC tokens.
- Two wallets sent 20 million MATIC to Binance, part of the 217 million MATIC from the Polygon Ecosystem Growth.
On November 15, MATIC’s price reached $0.94, representing a 21.27% decrease by the current press time.
Technical Analysis and Price Projection
From a technical standpoint, MATIC’s momentum may continue to be bearish. The rejection of $0.78 and the intense rejection at $0.75 suggest potential downward movement.
Considering the Awesome Oscillator (AO) reading of -0.027 and the Relative Strength Index (RSI) at 33.11, there is a risk of MATIC dropping to $0.70. A bullish reversal may occur if the RSI reading hits 30.00 or below, contingent on demand creating a buy wall.
