As Polygon Whales Quit, Here Are Key MATIC Price Levels to Watch

Polygon (MATIC) was one of the best-performing cryptocurrencies by market capitalization, but the bearish blues did not entirely spare its price.

After posting notable gains over the weekend, the cryptocurrency market recorded one of its biggest setbacks. Polygon (MATIC), like the rest of the market, could not sustain its recent double-digit gains.

Over the past week, the MATIC price has appreciated by more than 40%. But at the time of this writing, the bear market has pushed the price of the coin down by almost 12.56% on the daily chart. Even so, MATIC maintained its weekly gains with growth of over 11% over the past seven days.

So, with the global crypto market turning red, can the MATIC price sustain the gains seen over the past week?

MATIC price at crossroads

Polygon’s price has been impacted by the recent crypto market crash amid uncertainties surrounding Binance’s announcement of the acquisition of cryptocurrency exchange FTX.

Polygon price, after hitting a multi-month high of $1.30, gave way to bearish market pressure. From a technical standpoint, analysts expected the MATIC price to face considerable resistance around the $0.98 mark.

Interestingly, at press time, MATIC was trading at $0.97, with bulls trying to hold price action above key resistance at $0.98. Data from IntoTheBlock’s In and Out of Money around price Indicator suggests that the $0.97 mark could serve as key support, as 3,220 addresses held 222.65 million MATIC around this price.

At press time, with MATIC testing the $0.97 mark, a drop below the same value could cause prices to drop further towards the $0.91 mark where 17,280 addresses held over 678 million. from MATIC.

With the market seeming instead, the question remained whether MATIC would also succumb to the downside pressure or recover from the pullback?

Polygon: What are the chances of recovery?

The recent MATIC price pump has been accompanied by a strong rally in daily active addresses. Data from IntoTheBlock suggests that new addresses and active addresses grew by 93.44% and 90.47% respectively on a weekly basis.

Additionally, the Polygon network surpassed 188 million unique addresses on November 7 itself. Even though the MATIC network seemed secure, a disturbing trend was MATIC whales fleeing the boat.

Over the past 30 days, Whale addresses fell 7.69%, while investors rose 32.81% and retailers maintained a subdued stance, appreciating just 2.96% .

Santiment’s data further suggests that MATIC addresses holding 10 million coins at infinity (%) had reduced their holdings from 78% at the end of September to around 74% at press time.

Although retailers and investors are holding their ground, the whales seem skeptical. A return of the whales to the scene could contribute bullish momentum for MATIC. However, going forward, since the MATIC price was below the $0.97 support, a drop to $0.91 would not come as a surprise.

In the event of a bearish invalidation, the MATIC price could rise to $1.00, if the market begins to rally.