MATIC, LINK post recoveries: Is this the reason why?
MATIC and LINK have fallen below their supports, but could recent accumulation help the price trend upward again?
Over the past few days, an accumulation of more than $3 million worth of MATIC and LINK tokens has taken place. Both MATIC and LINK have witnessed an increase in their values within the last 24 hours.
According to data from Lookonchain, on December 20th, newly created wallets withdrew 24,860 Chainlink (LINK) tokens valued at $3.5 million and 5 million Polygon (MATIC) tokens valued at $3.13 million from the Binance (BNB) exchange.
To assess the significance of this recent accumulation, it's important to compare it with the current exchange flow of these assets.
Divergent Accumulation Patterns Observed for Polygon and Chainlink
Following the aforementioned report, FoxCryptoNews conducted an analysis on CryptoQuant for Polygon's exchange flow, revealing that the recent accumulation by the new wallet did not offset the substantial inflow of tokens.
As of the latest update, MATIC's exchange flow remained in positive territory, reaching its highest point in recent days at 15.4 million. This indicates a notable influx of MATIC tokens into exchanges, surpassing the volume being accumulated.
On the other hand, Chainlink demonstrated an accumulation pattern discerned from its exchange flow. The chart displayed a consistent trend of outflows over the past few days, as evidenced by the negative exchange netflow.
As of the time of writing, the NetFlow stood at approximately -411,565. This prevailing trend indicated that holders were opting to retain their positions rather than selling.
MATIC and LINK Experience Modest Recoveries
FoxCryptoNews conducted an analysis of Polygon's daily timeframe price movement, shedding light on the underlying cause of the recent increase in exchange inflow. The chart illustrated a recent downtrend in the price over the past few days.
The magnitude of this decline became apparent as the price fell below its short-term moving average (depicted by the yellow line). Previously, this yellow line had functioned as a support level, primarily at the $0.8 price range.
At the time of writing, Polygon was experiencing a 1.8% increase in value, trading at approximately $0.7.
Read Polygon’s [MATIC] Price Prediction 2023-24
Similar to MATIC, LINK also witnessed a drop below its yellow line, though the decline was less significant. As of the current moment, the token was trading at approximately $14.4, reflecting a modest increase of over 2%.
Additionally, its Relative Strength Index (RSI) remained below the neutral line, indicating a bearish trend despite the recent price uptick
Dec 21, 2023