- MATIC price climbed slightly on Wednesday, yielding nearly 7% weekly gains for holders.
- Wallets linked to the Polygon Foundation have deposited 15.5 million MATIC tokens to Binance in the past five days.
- MATIC holders took $9.38 million in profits between February 8 and 14, likely increasing selling pressure on the scaling token.
MATIC, the native token of Ethereum’s largest scaling solution, rose slightly on Wednesday after basing at a daily low of $0.8438,Wednesday, February 14. The scaling token is up over the past week, offering 6.54% gains to holders. Yet storm clouds may be ahead for MATIC as the volume of tokens being moved from wallets to exchanges has increased dramatically over the past five days – often a sign investors are getting ready to offload their holdings to the market.
Also read: XRP price trades below $0.53, Ripple plans to pivot from payments to custody
MATIC supply on exchanges climbs to 1 billion
According to data from crypto intelligence tracker Santiment, MATIC Supply on Exchanges climbed from 984.06 million on January 27 to 1 billion on Wednesday. The increase in MATIC reserves on exchange wallets is likely to increase selling pressure on the asset, boding negatively for the price.
 [12.39.57, 14 Feb, 2024]-638434950403823159.png)
MATIC Supply on Exchanges and price. Source: Santiment
According to data from on-chain data tracker Spotonchain, two wallets linked to the Polygon Foundation deposited 15.5 million MATIC tokens to Binance in the past five days. The MATIC tokens are worth a total of $13.2 million and the scaling asset’s price dipped slightly after each deposit.
MATIC deposit by Polygon Foundation. Source: Spotonchain
Another on-chain metric that supports a bearish thesis for the asset is the profit-taking by whales. Between February 8 and 14, MATIC holders took $9.38 million in profits according to the Network Realized Profit/Loss indicator seen in the chart below. The profit taking spikes coincide with Whale Transactions valued at $100,000 and higher. This signals large wallet investors realized gains in MATIC in the past week.
 [12.46.47, 14 Feb, 2024]-638434951138547154.png)
MATIC whales and profit taking. Source: Santiment
At the time of writing, MATIC price is $0.8616 on Binance and the scaling token is at a risk of decline to its Monday low of $0.8183.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Solana price slips as Canadian Sol Strategies files with US SEC to list on NASDAQ
Solana (SOL) price upside action stays subdued, leaving the smart contracts token vulnerable to downside risks. SOL is trading at $145 at the time of writing on Thursday, weighed down by elevated risks in the derivatives market.
Crypto Today: Bitcoin, Ethereum pare losses as XRP wobbles amid an unstable derivatives market
Price action in the broader cryptocurrency market remains subdued following the Federal Reserve (Fed) decision on Wednesday, which met expectations leaving interest rates unchanged in the range of 4.25% to 4.50%.
Three reasons why Pi Network could drop below $0.50
Pi Network (PI) is trading in the red around 1% at press time on Thursday, risking a potential drop below the $0.50 psychological level. As the bearish trend gains traction, there are three reasons why Pi Network could drop below $0.50 in June.
US DOJ reports record $225 million seizure of funds related to crypto confidence scams
The US Department of Justice announced on Wednesday the largest cryptocurrency seizure in its history, targeting more than $225 million tied to crypto frauds. The FBI and the US Secret Service utilize advanced blockchain analysis to solve cryptocurrency confidence scams.
Bitcoin: BTC could slump to $100K amid Trump-Musk tussle
Bitcoin (BTC) tumbled to a low of $101,095 on Friday amid volatility in the market. The effect of the tussle between United States (US) President Donald Trump and Tesla Chief Elon Musk negatively influenced the NASDAQ and Tesla's stock price on Thursday, although both are recovering on Friday.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.