- Lookonchain, has identified a whale action behind the massive drop in the price of MATIC.
- Cumberland transferred 14 million MATIC, equivalent to $9.8 million to two crypto exchanges.
- MATIC’s price has fallen by more than 43% in the past seven days.
Blockchain analytics platform, Lookonchain, has identified a whale action behind the massive drop in the price of MATIC over the past 24 hours. Lookonchain tweeted that Cumberland, a liquidity provider, sold a substantial amount of MATIC tokens.
Lookonchain noted Cumberland deposited 9 million MATIC, equivalent to $6.3 million, into the Binance exchange. The company also deposited 5 million MATIC, equivalent to $3.5 million, into the Coinbase exchange. Both transactions totaled 14 million MATIC, equivalent to $9.8 million transferred to the two crypto exchanges. MATIC’s price dropped by 29% shortly after Cumberland executed the transactions.
The recent plunge in MATIC’s price extends the fall of the digital token in a week when it has shown significant downside momentum. Days before, MATIC dropped under the support at $0.82, showing signs of dropping lower. Throughout the week, the bears seemed in control as the price dropped further. MATIC’s price has fallen by more than 43% in the past seven days.
Notably, the current drop is not exclusive to MATIC, as several other altcoins followed suit, shedding more than 20% of their value in the past 24 hours. Data from CoinmarketCap shows that Cardano has lost over 36% in the past day. Other tokens that made significant losses include TRON and Solana, which have lost 22% and 35% of their values, respectively.
Avalanche, Shiba Inu, Cosmos, Chainlink, and Uniswap did not escape the market crash. All of them lost more than 20% of their values in the last 24 hours. The bloodbath across the board reflects a market condition that goes beyond an act by a single whale over one digital asset.
Many crypto users suspect the situation to be an aftermath of the ongoing regulatory issues between the Securities Exchange Commission (SEC) and some high-profile crypto exchanges. The FUD (Fear, Uncertainty, and Doubt) generated by the situation may be behind the current volatility in the crypto market.
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