The News Crypto -
- Despite a 1,493.81% surge in large transaction volume involving Polygon (MATIC) on July 11, Polygon has failed to react positively.
- The bearish divergence between MATIC’s declining price and increasing trading volume suggests strong selling pressure and negative market sentiment.
- With the Elder-Ray Index indicating bear power dominance in the market, MATIC’s price could potentially drop to $0.42 if the negative trend persists.
Polygon (MATIC) might experience further devaluation despite the recent attention it has garnered from its whale holders.
On July 11, the volume of large transactions involving the MATIC token surged to a seven-day high of $103 million, sparking hopes of a potential price rally. However, the altcoin’s price has since failed to respond positively and continues to trend downward.
Source: IntoTheBlock
Polygon’s Price Unresponsive to Whale Influence
Data from IntoTheBlock reveals that on July 11, MATIC’s large transaction volume skyrocketed to an impressive $103 million.
This figure represents a staggering 1,493.81% increase from the $6.45 million recorded in transaction volume just a day prior.
Large transactions are classified as those exceeding $100,000 in value, and when their volume surges in this manner, it typically indicates heightened activity among institutional investors.
Due to the substantial volumes involved, these large transactions have the potential to significantly influence the asset’s price.
However, Polygon price has remained unperturbed by this whale activity. At press time, the altcoin is trading at $0.49, having dropped by 4% in the past 24 hours, despite its trading volume increasing by over 10% during the same period.
This bearish divergence, characterized by a declining price amidst surging trading volume, suggests that selling pressure is sufficiently strong to drive the price down, even in the face of high trading activity.
Such a scenario typically occurs when market sentiment surrounding an asset is negative. If this trend persists, it could lead to further price declines for MATIC.
This content was originally published on The News Crypto
