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MATIC Drops 21% in April: Will 115K Polygon Whales Reverse Its Fortunes in May?

April witnessed a sharp 21% drop in the value of MATIC, a prominent Layer-2 (L2) token, raising concerns among investors about its near-term prospects. Despite this downturn, the Polygon network has seen a notable increase in the number of large-scale investors, or ‘whales,’ according to data from Sentiment.

Over the past month, the number of MATIC whales holding between 1,000 and 1,000,000 tokens grew by 2%, totalling 115,000 holders. Additionally, the largest holders, controlling between 1,000,000 and 100,000,000 tokens, also expanded their stakes by 5%, now commanding 21% of MATIC’s circulating supply of 9.8 billion tokens.

This surge in whale activity poses the question: Could these major stakeholders reverse MATIC’s fortunes in May?

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Polygon Whale Activity

Source: Sentiment

MATIC Struggles Despite Increased Whale Activity, Price Drops to $0.72

espite a rise in large-scale investor engagement over the past month, the price of MATIC has not seen an uptick and has instead fallen by 21%. Currently, the altcoin is trading at $0.72. This price decline coincides with a broader downturn in the cryptocurrency market, which has seen an 11% drop in total market capitalization last month as per CoinGecko. Trading activity has waned, contributing to the downturn.

MATIC’s key indicators reflect ongoing market challenges:

  • The Relative Strength Index (RSI) stands at 38.41.
  • The Money Flow Index (MFI) is at a low 21.34, suggesting the asset is oversold.

These metrics indicate significant selling pressure, reinforcing the bearish sentiment around MATIC despite the growing number of whales.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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