Polygon (MATIC) Whales Accumulate Despite Price Drop

While the price of the Polygon (MATIC) token has declined by over 20% in the last month, the number of large investors or “whales” holding MATIC has increased during this period. On-chain data from blockchain analytics firm Santiment reveals this contrasting trend of whales accumulating MATIC even as its value dipped.

According to Santiment’s data tracking, the count of MATIC whales holding between 1,000 and 1,000,000 tokens has increased by 2% over the past 30 days. At present, this whale cohort consists of around 115,000 investors. This increase indicates that smaller whales have been actively acquiring more MATIC tokens despite the cryptocurrency’s recent downtrend.

The accumulation is even more pronounced among the bigger MATIC whales. The whale category, owning between 1,000,000 and 100,000,000 MATIC tokens, saw a 5% rise in their numbers last month. This group of high-net-worth investors controls a substantial 21% of MATIC’s circulating supply of 9.8 billion tokens.

Source: Santiment

MATIC’s Price Declines Despite Whale Interest

However, this whale interest and token accumulation have failed to boost MATIC’s price performance. The Layer-2 token has declined by roughly 21% over the past 30 days to currently trade at around $0.72, as per pricing data from CoinMarketCap. MATIC’s price trajectory mirrors the general bearish sentiment that has gripped the broader cryptocurrency market lately.

According to data analytics platform CoinGecko, the global crypto market capitalization has contracted by 11% in the past month. This overall market downturn has weighed on MATIC’s price despite the sustained accumulation of whales.

The technical analysis of MATIC’s recent price action also paints a bearish picture. The key momentum indicators like the Relative Strength Index (38.41) and Money Flow Index (21.34) are deep in oversold territory on MATIC’s 3-day chart. Moreover, the token’s price trades below the Parabolic SAR indicator’s dotted line, signaling a potential downtrend continuation.

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