• Polygon (MATIC) has seen a dramatic increase in price since the beginning of the year and recently some whale addresses were observed buying more of the token, likely driving up the price.
• On-chain data shows that investors holding between 10 and 100 million MATIC have purchased 55 million more for almost $60 million.
• The 30-day active address measure of Polygon revealed that the number of active addresses on the network had decreased, yet holders are still seeing profits thanks to an increase in Market Value to Realized Value (MVRV) ratio.
Overview
Recently, there has been a rise in the price of Polygon [MATIC], and this increase appears to have been caused by the activity of some whale addresses. What are some of the likely reasons behind the actions of these whales, and how could the price of MATIC be further impacted by their actions?
Price Surge
A daily timeframe chart shows that Polygon (MATIC) has been upward over the past few trading days. Up about 4% from its opening price, it was trading at about $1.38 as of this writing. Based on the increase seen throughout the trading session, MATIC’s price rose by over 16% over the preceding three days. Even more impressive was that its current upswing meant it had increased by more than 75% since the beginning of the year. The extension of Bollinger band, along with present price movement suggested that MATIC is unstable and short Moving Average offered support line for it. According to Relative Strength Index, asset was in bull trend and on verge to hit overbought region .
Supply Distribution Increase
When analyzing Polygon (MATIC) on-chain data, it could be seen that institutional investors have been buying more of token as late. Per Alicharts investors holding between 10 – 100 million MATIC have purchased 55 million more for almost 60 Million USDT worth amount supply distribution statistic indicated an increase 11%. It was also noted that delivery supplies began to increase volume in February .
Active Addresses Decline
However a look at 30-day Active Address measure showed a decrease in number active addresses on network; even though there were almost 2.7 million active addresses as this writing figure showed an apparent fall .The price increase had however provided Poygon (MATIC) holders with some profits during same period despite fall number active addresses; As time writing Market Value Realized Value (MVRV) ratio indicated MATIC 1795%.
Conclusion
The activities from whale accounts may reflect investor confidence inPolygon’s future prospects which sparked multiple purchases from large holders leading to surge in its prices .Also ,the declinein Active Addresses indicates profit taking behaviour amongst investors resultingin raising funds for future Investments or potential arbitrage opportunities To sumup these events suggest optimistic outlookfor future growth prospectsofPolygon(MATIC).