MATIC price could nosedive after holders take $9.38 million in profits within a week

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. 

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. 

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.