Polygon erases mid-September gains after whale moves 10.78M MATIC tokens to Binance

Polygon (MATIC) has exhibited bearishness for most of 2023 as the broad crypto market endured a prolonged downside. The United States Securities & Exchange Commission dented the altcoin further after labeling it a security, forcing platforms such as Robinhood to delist MATIC alongside alts Solana and Cardano.

Polygon erases mid-September gains

Polygon’s downward stance has seen it lose its mid-September gains, which emerged amid improved sentiments after developers proposed to migrate to Polygon 2.0. Also, the proposals included replacing MATIC with a POL token for staking and gas payments in the ecosystem.

According to invezz.com news, Polygon 2.0 architecture kickstarted the crypto’s journey as a valuable asset as it introduces unified liquidity and unlimited scalability.

However, the asset has erased gains accrued during this hype. Meanwhile, Lookonchain believes a whale moving 10.78 million tokens (worth around $5.5M at current prices) to exchange Binance amplified MATIC’s bearish stance.

That transfer occurred within the past 26 hours, triggering a 3% decline in the token’s price.

Markets perceive token movement to exchange as a plan to sell, and considering the current price dips, holders could be closing positions to escape further losses. Data analytic site Santiment shows Polygon’s daily active addresses have increased by 35% since 24 September.

Also, whales holding over 100,000 MATIC tokens have increasingly transacted in that timeframe. Such indications show MATIC’s price may witness surged volatility in the coming days.

Polygon price hovered at $0.5054 at press time, highlighting continued declines if it stays beneath a downtrend line. The plunging Relative Strength Index matches the asset’s bearishness. Also, the Awesome Oscillator flashed red histogram bars, indicating bear dominance.

While Polygon’s market value declines, enthusiasts should watch broad market developments as ‘Uptober’ 2023 nears. Bullish markets will see MATIC eyeing the $0.73 – $0.81 price range.