Why MATIC price action failed to post more upside in the past 24 hours

MATIC holders can have an interesting week, especially now that the original polygon token has attracted crypto whales.

A recent WhaleStats analysis showed that MATIC was among the top 10 cryptocurrencies acquired by ETH whales.


This is the AMBCrypto price prediction for MATIC


According to the election tracking website, the index of fear and greed from elections is now tilting towards the level of greed. But does this indicate that the price of MATIC is high?

Well, not necessarily. It turns out that whale buying wasn’t the only participants in the past 24 hours. The number of whales buyers and sellers equals 21.

MATIC’s buying volume was significantly lower at $584,000 compared to the $607,000 sell volume at the time of writing. This may explain why the cryptocurrency’s price action failed to post more upside in the past 24 hours compared to its bullish performance on October 23.

MATIC is trading at $0.87 at press time, with the daily candle indicating a decrease of 2.65%. This result was more consistent with the higher sales volume.

Source: TradingView

The token has shown higher relative strength over the past four days as indicated by the RSI. Her microfinance institution also swung in favor of the upside.

Sufficient bullish momentum backed by healthy electoral activity may push MATIC near the overbought territory mid-week. This outcome will depend on whether the whales continue to gather.

Uncertain fate in troubled waters

A look at MATIC’s on-chain metrics confirmed that electoral activity registered a significant increase over the past 24 hours. The number of electoral transactions recorded a significant increase in addresses by over $100,000 and $1 million in the last 24 hours.

Number of Transactions for MATIC Elections

Source: feeling

The above note is consistent with the WhaleStats report. In addition, the daily active MATIC headlines hit weekly highs after a strong rebound in activity over the past two days.

MATIC daily active titles

Source: feeling

The increase in the number of daily active titles confirms that retailers are also participating. But neither the number of option transactions nor the active titles give an exact difference between buying and selling pressure.

Fortunately, the width distribution scale provides a better snapshot of electoral activity.

According to Delivery Breakdown, titles with more than 10 million MATICs have increased their balances by 0.06% in the past 24 hours.

This is notable because this selection category currently controls the lion’s share of MATIC’s offerings.

MATIC CHOICE ACTIVITY

Source: feeling

Additionally, addresses with between 1 million and 10 million MATIC tokens have reduced their balances by 0.07% in the past 24 hours.

This class controls the second largest share and likely contributed to the perceived selling pressure. There is no doubt that these two groups have the greatest influence on MATIC’s price action.

conclusion

Since the larger whales will affect the rest of the market, investors should keep an eye on the supply distribution.

The pivot from the second largest option is likely to lead to more upside and a potential short-term rise to the overbought territory.

On the other hand, the downside is to wait if the biggest whales start selling.

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