- MATIC price climbed slightly on Wednesday, yielding nearly 7% weekly gains for holders.
- Wallets linked to the Polygon Foundation have deposited 15.5 million MATIC tokens to Binance in the past five days.
- MATIC holders took $9.38 million in profits between February 8 and 14, likely increasing selling pressure on the scaling token.
MATIC, the native token of Ethereum’s largest scaling solution, rose slightly on Wednesday after basing at a daily low of $0.8438,Wednesday, February 14. The scaling token is up over the past week, offering 6.54% gains to holders. Yet storm clouds may be ahead for MATIC as the volume of tokens being moved from wallets to exchanges has increased dramatically over the past five days – often a sign investors are getting ready to offload their holdings to the market.
Also read: XRP price trades below $0.53, Ripple plans to pivot from payments to custody
MATIC supply on exchanges climbs to 1 billion
According to data from crypto intelligence tracker Santiment, MATIC Supply on Exchanges climbed from 984.06 million on January 27 to 1 billion on Wednesday. The increase in MATIC reserves on exchange wallets is likely to increase selling pressure on the asset, boding negatively for the price.
 [12.39.57, 14 Feb, 2024]-638434950403823159.png)
MATIC Supply on Exchanges and price. Source: Santiment
According to data from on-chain data tracker Spotonchain, two wallets linked to the Polygon Foundation deposited 15.5 million MATIC tokens to Binance in the past five days. The MATIC tokens are worth a total of $13.2 million and the scaling asset’s price dipped slightly after each deposit.
MATIC deposit by Polygon Foundation. Source: Spotonchain
Another on-chain metric that supports a bearish thesis for the asset is the profit-taking by whales. Between February 8 and 14, MATIC holders took $9.38 million in profits according to the Network Realized Profit/Loss indicator seen in the chart below. The profit taking spikes coincide with Whale Transactions valued at $100,000 and higher. This signals large wallet investors realized gains in MATIC in the past week.
 [12.46.47, 14 Feb, 2024]-638434951138547154.png)
MATIC whales and profit taking. Source: Santiment
At the time of writing, MATIC price is $0.8616 on Binance and the scaling token is at a risk of decline to its Monday low of $0.8183.
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