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Polygon (MATIC) Faces Selling Pressure as Bears Continue to Dominate

Published 18/01/2024, 20:39
Updated 18/01/2024, 23:45
Polygon (MATIC) Faces Selling Pressure as Bears Continue to Dominate

The News Crypto -

  • Polygon (MATIC) faced increased selling pressure due to Celsius transferring millions of tokens to centralized exchanges.
  • Celsius deposited 22.73 million MATIC tokens worth $18.79 million on Binance and 3.02 million tokens valued at $2.47 million on Crypto.com.
  • Celsius addresses still hold 34.08 million MATIC tokens, equivalent to $27.88 million.

Polygon (MATIC), once a high-flying cryptocurrency that crossed the $1 mark in December 2023, is now facing increased selling pressure as defunct Celsius, a notable crypto entity, transfers millions of MATIC tokens to centralized exchanges like Binance and Crypto.com. This move has raised questions about the cryptocurrency’s price trajectory.

Spotonchain, an on-chain analysis platform, has revealed that Celsius deposited 22.73 million MATIC tokens worth $18.79 million onto Binance and 3.02 million tokens valued at $2.47 million onto Crypto.com.

Despite these significant transfers, Celsius addresses still retain 34.08 million MATIC tokens, equivalent to $27.88 million based on current market prices.

The chart below illustrates that the price of MATIC has experienced declines following each deposit from Celsius. This pattern suggests a likelihood that Celsius may be selling these tokens after moving them to centralized exchanges, which has contributed to the downward pressure on MATIC’s value.

Source: Tradingview

Polygon (MATIC) Price Down Amid Controversies

Recent controversies surrounding the allocation of MATIC tokens by the Polygon Foundation have further impacted MATIC’s price, causing it to drop by over 25% from its recent peak of $1.09.

Additionally, data indicates a surplus of MATIC deposits on centralized exchanges in the past week, with the balance of MATIC tokens increasing by 11.48 million during this period.

Despite these challenges, technical analysts are cautiously optimistic about MATIC’s prospects in higher time frames. Analyst @Moneytaur_ suggests that the $0.55 price range presents a potential higher time frame (HTF) buying opportunity for MATIC.

In conclusion, MATIC’s recent transfers to exchanges from Celsius entity wallets have heightened concerns about selling pressure. Simultaneously, ongoing debates surrounding the Polygon Foundation’s token allocation continue to affect MATIC’s price.

While challenges persist, analysts are closely monitoring the $0.55 price level for potential MATIC buying opportunities in the midst of evolving market dynamics.

This article was originally published on thenewscrypto.com

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