Polygon (MATIC) price is facing potential correction owing to growing bearishness among investors.
This sentiment has intensified to the point where even whales have opted to reduce their holdings and book profits.
Polygon Investors Move to Sell
MATIC price is flashing a bearish signal, and investors react to it rather strongly. This is evident from the substantial drop in network growth. This indicator measures the rate at which new addresses are formed on the network, indicating the overall traction of the project among investors.
At the moment, Polygon’s network growth is at a seven-month low, which means that MATIC’s adoption is taking a massive hit.
Read More: How To Buy Polygon (MATIC) and Everything You Need To Know
However, it’s not just potential investors exhibiting skepticism but also existing MATIC holders. Large wallet holders are dumping their holdings, with over 19 million MATIC worth over $16 million moved to exchanges. Most of these addresses are whales holding between $10,000 and $100,000 worth of MATIC.
The decline in these investors’ supply is considered a major signal as any potential for recovery becomes invalidated.
MATIC Price Prediction: Look out for a Drop
MATIC price is currently witnessing a consistent drawdown, bringing it closer to the critical support of $0.7489. Given the aforementioned market cues, it is likely that the Polygon native token will lose this support.
Consequently, MATIC price would fall by 11.63% to test the support of $0.7422. If the altcoin falls below it, the support level of $0.7000 will be tested.
However, the DeFi token is also in a falling wedge, which could reverse the outcome. A falling wedge is a bullish chart pattern characterized by declining price highs and lows, converging towards a narrower range, typically indicating a potential reversal to the upside.
Read More: Polygon (MATIC) Price Prediction 2024/2025/2030
Thus, MATIC price could invalidate the bearish thesis if it notes a reversal and reclaims $0.8876.
Disclaimer
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