- Whale investors in MATIC Coin have increased their holdings by 47 million since August 29.
- Despite this trend, data on daily active addresses is declining as individual investors seem to ignore it.
- If the price of MATIC falls below $0.55, it could target deeper lows.
The crypto market has been sending oversold signals for a long time, but the negative trend of BTC is discouraging investors. However, there are those who ignore the general sentiment. These are whale investors who have been making significant purchases in a popular cryptocurrency. A similar action was also reported by XRP Coin whales yesterday.
Analysis of Polygon (MATIC) Coin
The price of Polygon (MATIC) is hovering around its lowest level in 2023, which is $0.55. However, on-chain readings and the movements of whale investors indicate that they are preparing for something big. On August 28, Polygon Co-Founder Nailwal Sandeep released a vital update about a “technical upgrade” from MATIC to a new “POL” token. Events following this suggest that whale investors reacted positively to this update.
On August 28, Nailwal made a post explaining the process and potential benefits that users could gain from the proposed transition to the POL Token. Within 24 hours after the post, MATIC whales disregarded the prevailing downtrend in price and went on a buying spree.
The graph below clearly shows this trend. According to Santiment data, a group of crypto whales with balances between 1 million and 100 million started buying around August 29. Specifically, they added 47 million MATIC to their reserves between August 29 and September 4.
Should MATIC Coin Be Bought?
The newly purchased 47 million MATIC is worth approximately $25.85 million. The increasing balances of whale wallets indicate that large institutional investors are taking bullish positions on MATIC. The timing of this buying frenzy suggests that the latest update from Nailwal about the POL token migration may have boosted the confidence of the whales.
Especially with the recent buying frenzy, whales have raised their cumulative wallet balances to an all-time high of 402 million MATIC. However, whether individual investors will join this rush remains uncertain.
The data on daily active addresses shows that individuals are not joining this rush. The Glassnode chart shows that Polygon reached 1,989 Active Addresses on August 17 and continues to fall to new lows. As of September 4, only 1,499 wallet addresses interacted on the Polygon network. In the past, the Polygon price movement was closely related to movements in Daily Active Addresses. Therefore, if the bullish stance of the whales does not affect individual investors, the price of MATIC may continue to fall.
