- Millions of MATIC were sent to Coinbase, but the token resisted a nosedive.
- If buying momentum heightens and circulation follows, MATIC may hit $1.
In three separate posts on X (formerly Twitter), Whale Alert disclosed that over 55 million Polygon [MATIC] tokens have been sent to the Coinbase [COIN] exchange. The whale tracking handle noted that the transfers were from unknown addresses.
However, the large volume and quick succession in which the tokens were sent called for concern. Usually, when tokens are sent from external sources into exchanges, there is a high probability that the intention is to sell.
No pressure can pull MATIC down
Furthermore, when it's a large number, the sell-offs (if eventually done), affect the price negatively. For MATIC, the transactions have not been able to pull down the price. At the time of writing, CoinMarketCap showed that the token exchanged hands at $0.83.
This value represented a 3.09% increase in the last 24 hours and a 63.25% hike within the last 30 days. MATIC's movement was similar to that of a number of altcoins, which have been heading in the upward direction.
But for the token, there has been a lot of whale activity on the Polygon network even before now. In fact, AMBCrypto discussed how the jump in whale accumulation translated into a surge in the token price.
Using the one-hour MATIC/USD chart, the rising price from $0.78 in the early hours of the 12th of November indicated that there was more buying power than the potential sell-offs. This was also evident in the Accumulation/Distribution (A/D) indicator.
The A/D line hit 1.34 billion, suggesting a strong upward breakout for MATIC. At press time, there has been a slight decline in the token value due to a mild distribution.
However, if the sell orders only last for a short period, and accumulation takes over, MATIC hitting $0.90 might not be out of question.
Source: TradingView
MATIC targets a new high
Besides the A/D, the Moving Average Convergence Divergence (MACD) has also crossed over into the positive region. This movement signals increasing upward momentum, confirming the indications shown by the A/D.
When it comes to circulation, AMBCrypto's on-chain analysis on Santiment showed that there was a surge in MATIC tokens used between the 5th to the 9th of November. A close look at the price action showed that MATIC jumped from $0.69 to $0.85 during this timeframe.
Read Polygon's [MATIC] Price Prediction 2023-2024
This was not a case of tokens being released into the circulating supply. So, there was no chance for the value of MATIC to decrease considering the widespread buying in the market. After that, circulation dropped.
Source: Santiment
But as of this writing, the number of MATIC circulating on the Polygon network had increased to 119.96 million. Combined with the ongoing accumulation, if the circulation gets back to 9 November levels, a ride to $1 may be on the table for MATIC.
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