MATIC makes the list of the most bought tokens by ETH whales. The price action over the last 24 hours shows that the token is still struggling to gain more advantage.
Polygon’s native token MATIC started this week with a bullish pivot on Monday (December 12) and has been gradually recovering ever since. A recent WhaleStats analysis revealed an incoming demand for whales that may generate more upside for MATIC.
According to the WhaleStats report, MATIC was among the top 10 tokens favored by the 100 largest ETH whales in the past 24 hours. The observation means that ETH whales have bought MATIC, a move that could give the bulls more power.
Check out the top 100 whales here: https://t.co/N5qqsCAH8j
— WhaleStats (crypto whale tracking) (@WhaleStats) December 14, 2022
ETH whale participation in MATIC’s prevailing bullish demand may amplify its rally. Sufficient bullish momentum could help it move above the 50-day moving average.
The token has been struggling to move above this indicator since early December. MATIC was trading at $0.921 at the time of writing, which was still below the 50-day MA.
MATIC’s price action over the past 24 hours revealed that it was still struggling to gain more gains. But could this change as the weekend approaches? Perhaps some of Polygon’s stats can provide useful insight into what to expect.
Will Short-Term Profit Taking Hold Back MATIC?
MATIC is down slightly over the past 24 hours despite observed ETH whale activity. One of the possible explanations for this outcome is that there was significant profit-taking by some market participants.
Such an outcome may have negated the buying pressure. In addition, MATIC’s age consumption metric recorded increased activity over the past two days.
The age-consumed measure could indicate that some large whales are taking advantage of the rebound in rising demand to secure exit liquidity.
It’s also worth noting that MATIC’s volume just hit a new 7-day high in the last 24 hours. This confirms that trading activity has certainly increased over the past day.
As expected, daily active addresses have also increased, especially over the past four days, indicating significant retail activity.
This increase in daily active addresses continues to benefit MATIC from a network activity standpoint. The token is likely to have more price volatility now that there is more buying and selling.
But this does not offer much clarity in terms of direction. Perhaps spreading the supply can provide more clarity.
According to recent observations, the top addresses are currently increasing their balances. This means that MATIC is more likely to yield a significant benefit.
This post MATIC could move above its 50-day moving average thanks to ETH whales
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