|

MATIC price aims for double-digit rally as Polygon whales stock up 55 million tokens in five days

  • MATIC price is bouncing back from the key support line marked at $0.765 after correcting by 17% in ten days.
  • Polygon whales have begun heavily accumulating in anticipation of a rally, adding 55 million MATIC since December 16.
  • The whales are substantiating the conditions that point towards recovery, with the MVRV ratio dipping into the opportunity zone.

MATIC price had a good beginning to December, followed by a disappointing mid-month performance, and is now looking at a bullish end. The altcoin is finding immense support from its whales, which have proven to be a key indicator of a rally in the past. This could cause the Polygon token to climb and breach the seven-month-old barrier.

MATIC price expected to see a recovery

MATIC price noted a 17% decline over the past couple of days after failing to breach the resistance level marked at $0.920. This price point has been acting as a barrier for the past seven months, noting a brief breach back in May this year.

As a result of the decline, MATIC price landed at $0.765, bouncing off the support line to trade at $0.813 at the time of writing. Although this points towards potential consolidation within the $0.920 and $0.765 range, in the short-term timeframe, the Polygon token is showing signs of recovery.

The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are both hinting at waning bearishness. RSI flipping neutral line at 50.0 into support and MACD noting a bullish crossover with green bars present would confirm the initiation of recovery.

MATIC/USD 1-day chart

MATIC/USD 1-day chart

This would play in favor of the bullish outlook, which suggests a rise to and breach of the $0.920 resistance line is possible. The on-chain behavior of investors is hinting at the same, and flipping the seven-month-old barrier into support would send MATIC price to $1.

However,  another failed breach would mean that the altcoin is going to witness a decline again and remain consolidated for a while. At the same time, if the $0.765 support is lost, the bullish thesis would be invalidated, calling for a correction to $0.700.

Whales are aiming at profits again

Polygon whale addresses turned bullish once again over the past few days after shedding their holdings since the beginning of the month. Since December 16, addresses holding between 1 million and 10 million MATIC have noted an increase of 55 million MATIC tokens worth a little over $44.5 million, bringing their holding to 930.97 million MATIC.

Polygon whale holding

Polygon whale holding

Their accumulation came right as MATIC price began correcting and stopped just as the altcoin bounced back from $0.765. These investors have been a crucial indicator of a changing trend in the past, with rallies occurring after their accumulation and correction following their selling.

Plus, their behavior also substantiates the conditions that hint at recovery falling in line with the inference of the Market Value to Realized Value (MVRV) ratio. This metric is an indicator that is used to estimate the average profit/loss of investors who purchase an asset. The 30-day MVRV ratio measures the average profit/loss of addresses who purchased an asset in the past month. 

For Polygon, the 30-day MVRV sits at -3.85%, which indicates that those who purchased MATIC in the past month are sitting at 3.85% losses. However, when MVRV is below -7%, investors tend to hold off on selling their holdings as it is an ideal time for accumulation. This is often followed by rallies, giving this area the term “opportunity zone”.

Polygon MVRV ratio

Polygon MVRV ratio

Polygon whales largely accumulated their MATIC tokens when MVRV was below -7%, giving strength to the possibility of a recovery.

Author

Aaryamann Shrivastava

Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.

More from Aaryamann Shrivastava
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

XRP rebounds amid ETF inflows and declining retail demand demand

XRP rebounds as bulls target a short-term breakout above $2.00 on Friday. XRP ETFs record the highest inflow since December 8, signaling growing institutional appetite.

Bitcoin Price Annual Forecast: BTC holds long-term bullish structure heading into 2026

Bitcoin (BTC) is wrapping up 2025 as one of its most eventful years, defined by unprecedented institutional participation, major regulatory developments, and extreme price volatility.

World Liberty Financial recovers as community votes to unlock treasury funds for USD1 adoption

World Liberty Financial recovers over 3% on Friday, holding ground at a key support trendline. Community begins voting to unlock roughly 5% WLFI treasury funds to incentivize USD1 stablecoin adoption.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid bearish market conditions

Bitcoin (BTC) is edging higher, trading above $88,000 at the time of writing on Monday. Altcoins, including Ethereum (ETH) and Ripple (XRP), are following in BTC’s footsteps, experiencing relief rebounds following a volatile week.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Bitcoin: Fed delivers, yet fails to impress BTC traders

Bitcoin (BTC) continues de trade within the recent consolidation phase, hovering around $92,000 at the time of writing on Friday, as investors digest the Federal Reserve’s (Fed) cautious December rate cut and its implications for risk assets.