- FTX exchange and two wallets from Polygon Ecosystem Growth deposited a total of 28 million MATIC tokens to exchanges.
- The Polygon wallet transferred 217 million MATIC tokens to 70 different wallets on November 15.
- MATIC price trend turned bearish, yielding 10% weekly losses to holders.
Polygon’s native token MATIC observed a spike in inflow to exchanges, increasing the selling pressure on the asset. MATIC price yielded double-digit losses for holders in the past week. The Ethereum scaling token’s on-chain metrics present a bearish outlook on MATIC price.
Also read: Bitcoin funds see over $311 million weekly inflows in anticipation of spot BTC ETF approval
MATIC inflow to exchanges
Based on data from crypto intelligence tracker, Lookonchain, the bankrupt FTX exchange transferred 8 million MATIC tokens worth $5.95 million to OKX exchange. Further, two wallets that received MATIC from the Polygon Ecosystem Growth wallet address, deposited 20 million MATIC tokens worth $14.86 million to Binance.
MATIC deposited to exchanges
All the above mentioned transactions took place early on Tuesday, a total of 28 million MATIC tokens flooded centralized exchanges, contributing to the rising selling pressure on MATIC.
MATIC’s on-chain metrics acted as bearish catalysts for the altcoin’s price.
On-chain metrics present bearish outlook
The Supply on Exchanges and Exchange Flow Balance metrics can be used to identify the selling pressure on an asset and the likely direction of its price trend. MATIC Supply on Exchanges has climbed from 7.99% to 9.05% of the total supply, between November 11 and 28. Exchange Flow Balance shows spikes in inflow in the days leading up to MATIC price decline, in the past week, seen in the chart below:
 [11.57.15, 28 Nov, 2023]-638367549571183839.png)
MATIC Supply on Exchanges and Exchange Flow Balance
Another key metric, Network Realized Profit/Loss (NPL) shows spikes in profit-taking by MATIC holders. Large spikes indicate that large number of holders have engaged in booking profits, contributing to the selling pressure on the scaling token. This indicator presents a bearish outlook on MATIC.
 [11.58.01, 28 Nov, 2023]-638367549864955210.png)
Network Realized Profit/Loss
At the time of writing, MATIC price is $0.7347 on Binance. The Ethereum scaling token yielded nearly 10% losses in the past week.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
XRP struggles near $0.7440, could still sustain rally after Robinhood listing
Ripple's XRP is trading near $0.6900, down nearly 3% on Wednesday, as declining open interest could extend its price correction. However, other on-chain metrics point to a long-term bullish setup.
Dogecoin price forecast: Miners offload $240M as DOGE approaches risk zone
Since Donald Trump’s victory on November 5, Dogecoin has emerged as the best performing asset among the top 10 ranked cryptocurrencies. On November 12, DOGE reached a new milestone price propelled by Trump’s statement confirming Elon Musk’s involvement in the incoming administration.
Ethereum Price Forecast: ETH's declining supply could fuel bullish pressure toward $3,732
Ethereum is trading near $3,220, down 2.5% on Wednesday after its supply began trending downward. The declining supply could fuel bullish pressure for the top altcoin, especially as institutional demand for ETH ETFs is also rising.
PEPE hits new all-time high, rallies nearly 50% following Robinhood and Coinbase listing
PEPE rallied over 50% on Wednesday and hit a new all-time high after crypto exchanges Robinhood and Coinbase announced they would list the meme coin on their respective trading platforms.
Bitcoin: Further upside likely after hitting new all-time high
Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.