Polygon's (MATIC) Drop Under Crucial Support Level May Cause Further Price Fall: Analyst

Crypto trader and analyst Ali Martinez has shared with his followers the negative situation that is happening with Polygon’s MATIC coin at the moment.

MATIC sell-off dangerously close

He pointed out that the coin has broken below the crucial support level of $1.04 and stated that it needs to be taken back fast. If it does not happen soon, the analyst continues, a panic sell-off may take place as this is the level when 21,530 wallets may begin dumping the 4.21 billion MATIC they hold.

These wallets had bought this crypto between the levels of $0.99 and $1.07.

#Polygon dipped below critical support! 😱$MATIC needs to reclaim $1.04 as support as soon as possible! The upswing is needed to prevent 21,530 addresses from panic selling a big portion of the 4.21 billion #MATIC they bought between $0.99 and $1.07. pic.twitter.com/TapDrhLnuO

— Ali (@ali_charts) March 10, 2023

Whale sells millions of MATIC

Data shared by @lookonchain Smart Money tracker shows that on March 9, an anonymous wallet unstaked 50.3 million MATIC tokens worth $53.7 million and then shifted 26.7 million MATIC to Binance to sell. This took place before the aforementioned drop, when the coin was trading at $1.07 - $1.09.

The same whale, according to @lookonchain, bought 153.4 million MATIC from two major exchanges, including Binance, between early July 2021 and early September 2022 at an average price of $1.16. Therefore, this whale has sold one-third of his MATIC at a loss now.

A $MATIC whale unstaked 50.27M $MATIC($53.7M) and transferred 26.5M $MATIC($28.4M) to #Binance just now.

The whale received 153.4M $MATIC from #Binance and #Cryptocom between July 6, 2021 and Sept 2, 2022, the average receiving price is $1.16.https://t.co/wrngXNM16P pic.twitter.com/OQUjrEEfRB

— Lookonchain (@lookonchain) March 9, 2023

121 million MATIC stored by ETH whales

WhaleStats crypto tracker has shared that around 7 hours ago, a whale called “Dwalin”, apparently taking his name after one of the main characters of the iconic novel “The Hobbit” by J.R.R. Tolkien, bought 5,401,623 MATIC.

This stash of Polygon’s tokens was the equivalent of $5,339,174 at the time of the purchase. Overall, according to WhaleStats, the largest 100 wallets on Ethereum are now holding a massive amount of MATIC – 121,792,331 tokens worth $150,251,240 in total.

This is 2.98 percent of their comprised portfolio. The leader here so far is Shiba Inu, though, (excluding USD-based stablecoins USDT and USDC). The whales are holding $601,204,724 worth of this popular canine cryptocurrency – 11.94 percent of their combined portfolio.