A cryptocurrency analyst has explained that Polygon could be on the brink of a major move due to a pattern in an on-chain indicator.
Polygon Whale Transactions Have Shot Up Recently
In a new post on X, analyst Ali has pointed out how the whales have shown a notable surge in activity on the MATIC network recently. The relevant indicator here is the "whale transaction count," which keeps track of the total number of Polygon transfers happening on the blockchain that exceed a value of $100,000.
When the value of this metric is high, it means that the a large amount of such transactions are taking place right now. Such a trend is a sign that the whale entities have an active interest in trading the cryptocurrency.
On the other hand, the indicator being low implies the whales are potentially not paying much attention to the asset currently, as they aren't making too many moves.
Now, here is a chart that shows the trend in the Polygon whale transaction count over the past month:
The value of the metric appears to have been quite high in recent days | Source: @ali_charts on X
As displayed in the above graph, the Polygon whale transaction count has observed a sharp rise in the last few days and has attained high levels not seen at any point during the past month.
In the chart, Ali has also attached the data for another version of the metric that keeps track of only the MATIC transactions that are carrying a value of at least $1 million.
These massive transactions are the ones more likely to move the market and it would appear that they have also gone up in number recently, implying that the whales haven't been shy of moving around large stacks.
"Such significant movements often signal impending price changes," explains the analyst in the post. "So we could be on the brink of a major MATIC price move!"
Any volatility that may arise of this high whale activity, however, could theoretically go in either direction, as the whale transaction count only tells us whether the whales are active or not, and doesn't contain any info about whether buying or selling is dominant.
Considering that the transactions have spiked after the price has registered a significant drawdown from its recent local top above $0.94, though, it's possible that the whales are making these moves to buy at the current relatively low prices.
It now remains to be seen how the Polygon price develops in the coming days given the high amount of trading activity that the whales have been participating in.
MATIC Price
Following the recent plunge, Polygon hasn't been moving much in the last few days as its price has gone rather stale below the $0.80 level. The below chart shows how the cryptocurrency has performed during the last 30 days.
The price of the coin seems to have gone through a large drawdown just a while ago | Source: MATICUSD on TradingView
Featured image from GuerrillaBuzz on Unsplash.com, charts from TradingView.com, Santiment.net
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Source: NewsBTC.com
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