Polygon (MATIC) price is making its way up the charts with a 14% rebound this week. On-chain data reveals how MATIC whale Investors have largely ignored the negative sentiment surrounding the market. Will the MATIC price rebound toward $0.75 in the coming weeks?
After being listed among the tokens listed as a security by the US Securities and Exchange Commission (SEC), the team behind the leading Ethereum layer-2 solution provider, Polygon (MATIC), gave a robust response rejecting the notion.
On-chain data shows that the response resonated among institutional investors, who have since increased their trading activity.
After a considerable decline in the past week, will this be enough to send MATIC up the social media trend tables again and trigger more price gains?
Polygon Whales are Ignoring SEC Fears
Interestingly, rather than fold, MATIC whale investors have actually intensified their trading activity since the SEC ordeal began last week.
The chart below shows how Large Transactions involving MATIC jumped 680% from 37 transactions on June 4 to a 2-month peak of 289 transactions on June 10. And at the close of June 13, the Polygon network recorded another 118.
Large Transactions measure real-time changes in the trading activity of whale investors by summing up the daily number of transactions exceeding $100,000.
Generally, whale activity is positively correlated to price. And when it begins to rise during a price correction, it signals an imminent rebound.
The chart above indicates that strategic whale investors with deep pockets are taking advantage of the price dip to accumulate more MATIC. If the trend continues, it is only a matter of time before MATIC begins to regain market share again.
Despite Price Gains, Social Sentiment is Still Trending Negative
While whale investors have been resilient, the general mood surrounding the Polygon ecosystem has remained largely negative. Indicatively, MATIC Social Volume has dropped to its lowest since September 2022.
Social Volume tracks the number of times a project is mentioned across relevant crypto media channels.
As shown below, MATIC Social Volume has declined persistently over the past week. Specifically, since MATIC recorded 1,302 mentions on June 6, it has dropped by a massive 1200% to 140 mentions at the close of June 12.
With Polygon Social Volume still at a relatively low point, strategic investors may now assume that MATIC has reached a turning point.
In summary, the resilience displayed by the MATIC whales and a potential upturn in social sentiment are critical factors. As more details of the recent Polygon 2.0 launch filter across mainstream media in the coming days, the ongoing MATIC price rebound will likely enter a new gear.
MATIC Price Prediction: $0.75 in Sight
If the Polygon 2.0 launch rekindles investors’ confidence, the MATIC price will likely rebound toward $0.75. However, for the bulls to be confident, MATIC must clear the initial resistance at $0.68.
According to IntoTheBlock’s In/Out of The Money Around Price (IOMAP) data, 1,770 investors that bought 103.79 million MATC at the average price of $0.68 could cause a pullback.
But if MATIC scales that resistance zone, it could reach the $0.75 price target.
Conversely, the bears could seize control again if MATIC unexpectedly drops below the critical $0.60 support zone. Although, the 5,550 investors that purchased 94.6 million MATIC at the minimum price of $0.61 will likely prevent the drop.
However, if that support level cannot hold, MATIC price could still retrace further toward $0.55
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.