MATIC price may lose shot at a rally as Celsius transfers $26 million in MATIC to Binance
- MATIC price fell below the stop loss of the rounding bottom bullish reversal pattern, essentially invalidating it.
- Celsius and FTX, both in their bankruptcy liquidation process, have resulted in multi-million dollars' worth of asset transfers.
- Celsius transferred 34 million MATIC, while FTX sent $15 million worth of multiple assets to Binance.
MATIC price is witnessing the impact of the FTX and Celsius bankruptcies as the latter moved to dump their MATIC holdings, naturally impacting the altcoin's value. The Polygon token is observing a fall in its value, albeit gradually, invalidating a crucial bullish reversal pattern.
Celsius sells MATIC
With both Celsius and FTX actively selling their holdings, the market is observing the impact of this event. Earlier on Friday, Celsius transferred around 34.08 million MATIC worth about $26 million to Binance.
Additionally, FTX/Alameda also transferred about $15 million worth of WBTC and Ethereum to Binance. While Bitcoin and Ethereum are too big to be impacted by such transfers, MATIC certainly did not escape, as it ended up resulting in a 3% drawdown.
Celsius and FTX/Alameda, two institutions in the bankruptcy liquidation process, continued to transfer assets today. Celsius address transferred 34.08 million MATIC ($26M) to Binance;
— Wu Blockchain (@WuBlockchain) January 20, 2024
FTX/Alameda address transferred 207 WBTC($8.6M) and 1150 ETH($2.85M) to Wintermute and 135…
However, the larger impact of this 3% decline could stump a potential 68% rally.
MATIC price could lose its long-due uptrend
MATIC price has been in a macro rounding bottom pattern since May 2023, and its many attempts at a breakout to achieve the target rally have failed in the past two months. While up until now, the stop loss marked at $0.77 had been acting as a crucial support line, losing the same would have meant that the bullish reversal pattern has been invalidated, which is exactly what happened after the decline on Friday.
Trading at $0.76 at the time of writing, the bullish pattern has been likely invalidated. This could mean that a drawdown to $0.60 is on the cards, given the Relative Strength Index (RSI) is also below the neutral line of 50.0, sitting in the bearish neutral zone.
MATIC/USD 1-day chart
However, given it's the crypto market, a definite no is never a possibility. If the broader market cues favor altcoins in the coming days, MATIC could see a potential reversal and reclaiming the $0.77 level as support followed by a breach of the $0.92 barrier would mean that a 44% rally is likely. This would mean a 68% rally from the present price, invalidating the bearish thesis as well.
Author
Aaryamann Shrivastava
FXStreet
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.
