MATIC price could face selling pressure from mounting inflow to exchanges
- MATIC whales have sent their token holdings to exchanges like Binance and Coinbase in large volumes on December 10.
- MATIC supply on exchanges has climbed to 9% of the token’s total supply, implying a rise in selling pressure.
- Polygon’s native tokens recent gains are likely unsustainable.
Polygon’s native token MATIC is likely to succumb to selling pressure from rising inflow of the asset to exchanges. Large wallet investors are sending MATIC to Binance and Coinbase, increasing the selling pressure on the asset.
Also read: Ethereum derivatives data points at bullish start for ETH in 2024
MATIC inflow to exchanges on the rise
According to data from crypto intelligence tracker Spot On Chain, LayerX Capital, and three other large wallet investors, deposited 12.53 million MATIC tokens (worth approximately $11.33 million) to Binance and Coinbase within a ten hour timeframe, early on December 10.
Whale transfer to exchanges Source: Spot On Chain
As seen in the supply on exchanges chart, MATIC supply on exchanges now accounts for 9% of the asset’s total supply. This is a notable increase and inflows to exchanges have increased since November 11, as seen in the chart below. This supports a bearish thesis for MATIC price.
 [11.09.12, 10 Dec, 2023]-638377850555725836.png)
MATIC supply on exchanges and exchange flow balance Source: Santiment
Whale activity, transactions valued at $100,000 and higher coincide with profit taking spikes on the Network Realized Profit/Loss chart. This implies whales are engaging in booking gains and this further contributes to selling pressure on the asset.
 [11.05.07, 10 Dec, 2023]-638377850864611550.png)
Whale transaction count (>$100,000) and network realized profit/loss Source: Santiment
At the time of writing, MATIC price is $0.9082 on Binance and the altcoin has yielded 11.4% weekly gains for holders. MATIC price climbed 2.82% on the day and the altcoin is likely to correct if selling pressure from whales continues to increase.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
