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MATIC Market Turmoil: 30M Tokens Transferred Amid Bearish Trend

Published 05/12/2023, 08:47 AM
Updated 05/12/2023, 09:00 AM
© Reuters.  MATIC Market Turmoil: 30M Tokens Transferred Amid Bearish Trend
MATIC/USD
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  • MATIC market experiences a 90-day low amid mysterious token transfer.
  • Bearish momentum overwhelms the MATIC market, creating a potential buying opportunity.
  • Rising CMF indicates a potential shift towards purchasing pressure in the MATIC market.

While bears wreaked havoc on the Polygon (MATIC) market, driving the price to a 90-day low of $0.8233, 30 million MATIC tokens worth approximately $25 million were mysteriously transferred from Polygon Staking to an unknown wallet.

This abrupt cash shift has the crypto community speculating about the potential market impact. Some anticipate a revival in demand, and others worry that selling pressure might further push down prices.

At the time of publication, MATIC was trading at $0.8274, a 3.99% decline from the previous close. The market capitalization and 24-hour trading volume of MATIC fell by 4.01% and 15.30%, respectively, to $7,663,380,749 and $409,553,906. This slump adds to the market’s continuous instability as investors cope with the aftermath of the significant MATIC move.

MATIC/USD 24-hour price chart (source: CoinMarketCap)

On the MATIC/USD 4-hour price chart, the 200-day moving average touches $1.029, while the 50-day moving average touches $0.932. The fact that the 50-day MA is lower than the 200-day MA indicates that MATIC/USD’s recent price fluctuations have been weaker than the long-term trend.

This fluctuation could indicate that selling pressure in the market currently outweighs buying pressure.

Price activity below both moving averages is also a negative indicator, indicating a lack of confidence in the market, with investors potentially staying on the sidelines until there is more clarification about MATIC’s future trajectory.

MATIC/USD chart (source: TradingView)

The RSI score of 21.23 indicates that the MATIC market is experiencing strong negative momentum, with selling pressure presently outweighing purchasing pressure. The fact that the market is oversold signals that there may be a potential purchasing opportunity for investors, as this may result in a price reversal soon.

The MATIC market is under mild selling pressure, with a Chaikin Money Flow rating of -0.07.

However, the fact that the CMF is rising suggests that there may be a move toward purchasing pressure in the near future. This could be a good sign for investors seeking a good buying time.

MATIC/USD chart (source: CoinMarketCap)

In conclusion, the MATIC market faces bearish pressure, but the oversold conditions and rising CMF suggest a potential buying opportunity for investors.

Disclaimer: The views, opinions, and information shared in this price prediction are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be liable for direct or indirect damage or loss.

The post MATIC Market Turmoil: 30M Tokens Transferred Amid Bearish Trend appeared first on Coin Edition.

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