Polygon price slides after whale moves 10.78 million MATIC into Binance

• Polygon price is down 3% in the last day, draws towards the support floor at $0.4994 with a possible continuation.
• Data from Lookonchain shows that a whale deposited 10.78 million MATIC tokens into Binance, worth approximately $5.5 million.
• While the whale still has 2.72 million MATIC tokens left, transferring tokens to exchanges often indicates intention to sell.
• On-chain data from Santiment shows increased activity, likely to provoke volatility in Polygon MATIC price.

Polygon (MATIC) price has been on a steep downtrend for the most part of the year, with the token withstanding the worst of the bear market. The situation was made worse when the US Securities and Exchange Commission (SEC) labeled MATIC a security, among other tokens like Solana (SOL and Cardano (ADA).

Also Read: MATIC price climbs as Polygon outlines proposals for 2.0 upgrade

Polygon price drops 3%, writes off mid-September gains

Polygon (MATIC) price is bearish, cutting down on the mid-September gains inspired by the developers’ proposals to implement the transition to Polygon 2.0. The proposals included the creation of a POL token to replace MATIC as the native gas and staking token of the ecosystem. 

At the time of writing, Polygon price is $0.5054, with clear indications of a continued downtrend as long as it remains trapped underneath the foothold of the downtrend line. With the Relative Strength Index (RSI) dipping, momentum seems to be falling and MATIC could drop in value. Worse, the Awesome Oscillator (AO) remains in the positive, with its histogram bars flashing red to show bears are having their say in the market.

MATIC/USDT 1-day chart

However, the gains made during this hype have all been cut down, with a recent report by web3 data analysis tool Lookonchain attributing it to a whale moving a total of 10.78 million MATIC tokens to the Binance exchange. At current rates, that volume in MATIC tokens is worth approximately $5.5 million. The transaction happened over the last 26 hours, causing a 3% slump in Polygon price.

Notably, moving tokens to exchanges is often interpreted as intention to sell, with the ongoing slump suggesting token holders are already closing their positions to avoid being caught as part of exit liquidity.

According to data from behavior analytics platform Santiment, the number of active addresses on a 24-hour scale has been on a steady rise since September 24, recording a 35% increase. In the same way, the whale transaction count for wallets with more than 100,000 MATIC and more than one million tokens has increased significantly.

MATIC Santiment

With these, it is likely that the Polygon MATIC price will record increased volatility over the coming days