In a recent development, a prominent Ethereum (ETH) whale operating within the Polygon network has made waves in the cryptocurrency market by executing three substantial transactions on-chain. The whale, in a synchronized series of transfers, offloaded an impressive 26 million $MATIC tokens onto Coinbase, a major cryptocurrency exchange.
The initial transaction involved the transfer of 10,000,000 Polygon (MATIC) tokens valued at $7,777,230, with subsequent transactions adding nine million and seven million tokens within the same minute and four minutes, respectively.
The impact of these transactions on MATIC’s market landscape was swift. Several hours after the whale activity was detected by the crypto whale-watching agency WhaleAlert, Polygon’s Layer-2 native coin $MATIC experienced a retest of support levels at $0.75, marking the daily bottom. Subsequently, MATIC rebounded to trade at $0.77.
Despite undergoing a market correction, the altcoin is yet to display sufficient strength on the daily charts to approach the $0.80 mark. Hourly charts indicate an overbought condition, with the Relative Strength Index (RSI) registering at 65. Notably, the 26 million MATIC tokens transferred to Coinbase occurred just a day after another crypto whale sent 35 million MATIC tokens to Binance, significantly altering the coin’s on-chain dynamics.
According to data from the blockchain analytics platform IntoTheBlock, large transactions on the chain decreased by 1.58%, and the ‘In The Money’ metric reported a 17.87% drop in the last 24 hours. This discrepancy suggests that Polygon may be encountering resistance from crypto enthusiasts seeking to capitalize on profits or break even at the current price range.
Despite today’s significant movement of over $20 million worth of MATIC into Coinbase, current on-chain data reveals a $15 million gap between inflows and outflows to cryptocurrency exchanges.
The context of this event holds importance, considering Polygon’s pioneering role in Zero-Knowledge powered Layer-2s, which contributes significantly to the adoption of Ethereum’s blockchain technology. As large transactions continue to influence MATIC’s on-chain behavior, the cryptocurrency community remains vigilant amid the evolving dynamics of this influential Ethereum-based altcoin.
