MATIC price gains might be sustainable as token leaves exchanges in large volumes

MATIC, a Layer 2 scaling token, is rallying after yielding 26.46% gains for holders over the past week. Polygon’s native token’s gains are likely sustainable as the altcoin has been leaving exchanges in large volumes since October 4.

Also read: SEC v. Ripple lawsuit still drags on, Judge Torres sets schedule for 2024

MATIC leaves exchanges in large volumes

According to data from crypto intelligence tracker Lookonchain, Justin Sun withdrew 764,740 MATIC tokens worth $705,000 from the centralized crypto exchange Binance. Sun’s MATIC withdrawal was one among others by large wallet investors.

A whale wallet withdrew 1.24 million MATIC, worth $1.14 million, early on Tuesday and a total of 3 million MATIC tokens worth $2.77 million between October 4 and November 14. 

MATIC withdrawal from Binance 

As MATIC reserves across crypto exchanges reduce and Polygon makes progress in game development, the token’s gains are likely sustainable. Polygon announced the firm’s progress in game development alongside Immutable. The Game7 report recorded the progress of both projects' web3 development. 

At the time of writing, MATIC price is $0.9445, with more than 5% gains on the day. Over the past month, MATIC yielded 82% gains for holders and over 25% in the past week. 

Technical analyst CryptoFaibik noted that Polygon’s native token is on the verge of a triangle breakout on the weekly chart.

MATIC price is set to break the ascending triangle by breaching the upper horizontal trendline with rising volume. It is typically considered a bullish formation. 

MATIC/USDT 1-week chart 

Failure to breach the upper trendline forming the ascending triangle could invalidate the bullish thesis and send MATIC price to support at $0.59 on the lower trendline.