MATIC price is facing a lack of buying confidence as the pre-halving correction strengthens short positions. The current correction in the market has significantly impacted MATIC’s price, resulting in a new low for the year. Nonetheless, as large investors are now accumulating more tokens during this decline, analysts anticipate a surge in the short term. Nevertheless, a key on-chain indicator could pose challenges to the price’s upward momentum.
Whales Sense ‘Buy The Dip’ Opportunity
Bitcoin’s recent dip to $60K triggered substantial selling pressure across the altcoin market, weighing on MATIC’s price. Nevertheless, amid the market downturn, smart investors see this as an opportunity to accumulate MATIC at discounted rates. Notably, large holders, commonly referred to as whales, have been notably active during this period of market decline.
Significantly, there has been a considerable increase in MATIC accumulation by whales, with one notable investor acquiring nearly 2 million tokens. This accumulation trend is further highlighted by a rise in the number of wallets holding significant amounts of the altcoin, ranging from 1,000 to 10 million coins.
Moreover, there has been a notable uptick in large transactions exceeding $100,000, signaling a concerted effort by whales to capitalize on the market downturn. According to data from IntoTheBlock, the volume of large transactions surged from a low of $28 million to over $130 million. Notably, this metric surged during MATIC’s decline but later receded following a surge in MATIC’s price, indicating strategic accumulation by whales during price dips.
Consequently, analysts expect that MATIC has established strong support levels, and the recent buying activity by whales could potentially send the price to resistance.
However, the Netflow metric might defend the sudden surge in MATIC price as it has surged above the positive region, suggesting increasing inflow than outflow. The metric currently stands at 3.5 million MATIC, which might create extra selling pressure near peak prices.
What’s Next For MATIC Price?
MATIC price experienced a sharp decline below the crucial support level of $0.9, forming a descending bearish pattern. However, buyers are strongly defending a decline below the $0.6 level. Currently, MATIC price trades at $0.685, declining over 1.4% in the last 24 hours.
However, there’s a slight hope for bullish investors as the price managed to hold around the EMA20 trend line, indicating buying interest at lower price levels. Bulls are now poised to initiate a potential recovery, although they are likely to encounter significant selling pressure around the descending resistance line.
In the event of a rejection from the resistance line, the MATIC/USDT pair could revisit the $0.6 support level and then potentially decline further to $0.5. A breach below this level may lead to a drop to $0.35. The first indication of bullish strength would emerge with a breakthrough above the resistance line, sending the price toward $1.
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