- Both FTX and the Polygon team distributed MATIC, as the token fell to $0.73.
- If MATIC fails to rebound to $0.75, the price may drop below $0.70.
- Should demand appear when MATIC becomes overbought, the price may reverse upwards.
Despite hitting close to $1 in mid-November, the price of Polygon (MATIC) has decreased to $0.73. This value represents an 8.25% decrease in the last seven days, according to CoinMarketCap data.
The decline in MATIC’s price mirrors the trend observed in other altcoins. Furthermore, there are factors suggesting the possibility of further declines. Smart money on-chain tracker Lookonchain highlighted some of these in a post on X (formerly Twitter).
A Combination of Large Sell Orders
According to Lookonchain, defunct exchange FTX transferred 8 million MATIC tokens, valued at $5.95 million, to Coinbase and OKX in the early hours of November 28.
Typically, transactions like this create price volatility while suggesting a potential sell order. Also, this transfer marks part of the sell-offs FTX had been involved in after getting approval from a court to liquidate its assets.
Like FTX, Lookonchain also found out that two wallets sent 20 million MATIC into Binance. These wallets are among the 70 recipients that obtained a portion of the 217 million MATIC from the Polygon Ecosystem Growth.
On November 15, MATIC’s price reached $0.94, meaning that the token value had decreased 21.27% between that period and press time.
MATIC to Slip to $0.70?
From a technical standpoint, MATIC’s momentum may continue to be bearish over the next few days. One reason for this projection is the token’s rejection of $0.78. On November 26, bulls had attempted to help MATIC rebound after hitting a $0.75 daily low.
As highlighted in the chart below, bulls used the $0.75 region as support. But after regaining control and pushing the price up, MATIC faced resistance at $0.78. Unfortunately, the rejection was so intense that bears overpowered bulls, and the $0.75 support could not stand anymore.
Furthermore, MATIC risks dropping from $0.73 as selling pressure seems to be the order of the day. This inference was also supported by the Awesome Oscillator (AO), which was -0.027 at press time.
The AO reading is a bearish sign. So, if bulls fail to scale the $0.78 resistance or retest the $0.75, MATIC may fall to $0.70.
Like the AO, the Relative Strength Index (RSI) also indicated increasing downward momentum. At the time of writing, the RSI was 33.11, suggesting that MATIC was close to being oversold.
Should the RSI reading hit 30.00 or go below it, there is a chance the MATIC’s direction may reverse upwards. However, that would depend on the bulls’ ability to create a buy wall. But if demand fails to provide cover, it could be difficult to negate the bearish price forecast.
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