MATIC Whale Exit Sparks Bearish Storm, Network Activity Plummets

Polygon (MATIC) Faces Bearish Pressure as Whale Exits and Network Activity Declines

Polygon (MATIC), a popular layer-2 scaling solution for Ethereum, has been facing bearish pressure recently, with a significant whale exit and declining network activity. The price of MATIC has been struggling to hold key support levels, and with growing bearish momentum, buyers may find it challenging to regain control.

At press time, MATIC is trading at $0.411, showing a 3.13% increase in the past 24 hours. However, the price has broken below a critical demand zone at $0.45, signaling continued bearish pressure. Additionally, the descending wedge pattern suggests that further downside is possible unless buyers reclaim higher levels. If MATIC fails to hold above $0.40, a deeper correction could follow.

On-chain data reveals that 93.51% of MATIC holders remain out of the money, meaning they purchased at higher prices. Only 4.58% of addresses are in profit, highlighting weak investor confidence. With heavy resistance at $0.43 – $0.45, bulls must break through this range to shift momentum. However, failure to do so could lead to more selling pressure and deeper losses.

The number of new addresses has fallen 58.67%, while active addresses dropped 44.34% over the past week. This significant decline suggests weakening user engagement, which is often bearish for price action. Additionally, lower participation could mean reduced demand for MATIC, making recovery harder. Therefore, if network activity does not rebound, MATIC could struggle to gain upward momentum.

Polygon transactions between $100K and $1M surged 620%, indicating increased institutional movement. However, transactions under $100 have dropped sharply, showing that retail interest is fading. Retail traders are key in sustaining rallies, and their absence could delay any recovery. Without strong retail participation, MATIC may continue facing downward pressure.

In conclusion, Polygon (MATIC) is facing a challenging environment with whale exits, declining network activity, and reduced retail participation. Unless the coin reclaims $0.45, bullish momentum will remain limited. With persistent selling pressure and weak demand, a deeper correction is more likely.