MATIC price gains might be sustainable as token leaves exchanges in large volumes

MATIC worth $705,000 was withdrawn from Binance by Justin Sun early on Tuesday.
A whale wallet address has pulled a total of 3 million MATIC tokens off centralized exchanges since October 4.
MATIC yielded over 25% weekly gains. The rally is likely sustainable as supply on exchanges declines.

MATIC, a Layer 2 scaling token, is rallying after yielding 26.46% gains for holders over the past week. Polygon’s native token’s gains are likely sustainable as the altcoin has been leaving exchanges in large volumes since October 4.

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MATIC leaves exchanges in large volumes

According to data from crypto intelligence tracker Lookonchain, Justin Sun withdrew 764,740 MATIC tokens worth $705,000 from the centralized crypto exchange Binance. Sun’s MATIC withdrawal was one among others by large wallet investors.

A whale wallet withdrew 1.24 million MATIC, worth $1.14 million, early on Tuesday and a total of 3 million MATIC tokens worth $2.77 million between October 4 and November 14.

MATIC withdrawal from Binance

As MATIC reserves across crypto exchanges reduce and Polygon makes progress in game development, the token’s gains are likely sustainable. Polygon announced the firm’s progress in game development alongside Immutable. The Game7 report recorded the progress of both projects' web3 development.

The @G7_DAO team pulled together massive data & accomplished a huge feat w/ the Game7 report.

The @Immutable x @0xPolygon tech stack continues to succeed, paving the way for the next generation of game development in the Immutable and Polygon ecosystems.https://t.co/I7QKd69MmU pic.twitter.com/pxV3VsCNia
— Polygon (Labs) (@0xPolygonLabs) November 14, 2023

At the time of writing, MATIC price is $0.9445, with more than 5% gains on the day. Over the past month, MATIC yielded 82% gains for holders and over 25% in the past week.

Technical analyst CryptoFaibik noted that Polygon’s native token is on the verge of a triangle breakout on the weekly chart.

MATIC price is set to break the ascending triangle by breaching the upper horizontal trendline with rising volume. It is typically considered a bullish formation.

MATIC/USDT 1-week chart

Failure to breach the upper trendline forming the ascending triangle could invalidate the bullish thesis and send MATIC price to support at $0.59 on the lower trendline.

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