MATIC Price Decline after Token Offload
The price of Polygon (MATIC) experienced a decline from $0.88 to $0.85 following a significant sell-off of 9 million tokens worth $7.75 million. This transaction, conducted by the Polygon Foundation, took place on February 13 and was part of a series of transactions occurring over the last five days, as reported by Spot On Chain.
In a series of transactions detailed on X, two wallets associated with the Foundation sent a total of 15.5 million tokens to Binance at an average price of $0.85, preceding the latest transaction. The large volume of tokens sent to exchanges indicates a selling participant, resulting in MATIC’s initial price drop from $0.88 to $0.85.
Bulls Aim to Defend Support
Analyzing the MATIC/USD 4-hour chart, a bullish engulfing candle on February 12 pushed the price to $0.88. However, facing an overhead resistance at $0.89, MATIC’s price retraced.
As of now, the token is trading at $0.86. Technical indicators, such as the Aroon, suggest that MATIC’s price may find support at $0.85. The Aroon Down (blue) stands at 14.39%, indicating potential support, while the Aroon Up (orange) at 85.71% suggests that sellers haven’t yet dominated. If bulls successfully defend the $0.85 zone, MATIC might avoid a decline to $0.80.
MATIC May Sink Further
In a less bullish scenario, MATIC could drop back to $0.85. However, a highly bullish condition may lead to breaking the $0.89 resistance, with a potential target of $0.95. The Relative Strength Index (RSI) at 57.75 suggests a neutral stance, but previous sell-offs affected the buying momentum, pushing the RSI down from its peak of 66.80 on February 13.
If bulls regain momentum, MATIC might rebound towards $0.90. Conversely, a failure to restore buying pressure could result in a price drop. Careful monitoring is essential, as a bearish takeover might lead to MATIC losing support at $0.85, potentially sinking to $0.80.
