Polygon: MATIC whales action and price action analysis

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Polygon: MATIC whales action and price action analysis

Polygon MATIC recently

MATIC holders could have an interesting week ahead of them, especially now that the native Polygon token is attracting crypto whales.

The latest WhaleStats analysis has revealed that MATIC is among the top 10 cryptocurrencies most acquired by ETH whales.

According to the whale-watching website, the whale's greed and fear index currently leans towards the level of greed. But does this show that the price of MATIC is going up?

Well, not necessarily. It turns out that whale buyers weren't the only participants in the last 24 hours. The number of whale trade is even 21 cases.

MATIC's buy volume is significantly lower at $585,000 compared to the sell volume of $606,500 at press time. This could explain why the crypto token's price action has not recorded more gains over the past 24 hours than it did on October 23.

MATIC is trading at $0.87 at press time, with its daily candle showing a decline of 2.65%. This performance is better suited to higher sales volumes.

Source: TradingView

The token has demonstrated increased relative strength over the past four days, as indicated by the RSI. Its IMF also pivoted to support this increase.

Sufficient bullish momentum supported by healthy whale activity could push MATIC close to the midweek overbought zone. This outcome will depend on whether the whale continues to accumulate.

MATIC Whales and Traders action

A review of MATIC's online indicators has confirmed that whale activity has increased significantly over the past 24 hours. The number of whale transactions recorded a significant increase in addresses with more than $100,000 and $1 million in the last 24 hours.

Source: Emotions

The above observation is consistent with the WhaleStats report. Additionally, MATIC Daily Active Addresses have announced their weekly highs after a strong return to activity over the past two days.

Source: Emotions

The increase in the number of daily active addresses confirms that retail traders are also getting in on the action. However, neither whale trade count nor active address metrics provide an accurate distinction between buying and selling pressure.

Fortunately, the supply distribution index provides a better snapshot of whale activity.

According to the supply distribution, addresses with more than 10 million MATICs have increased their balances by 0.06% in the last 24 hours.

This is notable as this type of whale currently controls the majority of the MATIC supply.

Source: Emotions

Additionally, addresses holding between one million and 10 million MATIC tokens have cut their balances by 0.07% in the last 24 hours.

This category controls the second largest weighting and is likely to contribute to selling pressure. Without a doubt, these two groups have the biggest impact on MATIC's price action.


Since larger whales are bound to affect the rest of the market, investors need to keep an eye on the supply allocation.

The pivot of the second major whale is likely to trigger further upside momentum and a potential short-term rally into the overbought zone.

On the other hand, it is detrimental if larger whales start to be sold.


Oct 25, 2022

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