Polygon (MATIC) price is moving lower as the altcoin appears to be losing support from its investors.
With the whales trying to sell their assets and the losses mounting, things are not going well for MATIC.
Polygon Investors Lose Confidence
As the price of MATIC continues to fall, it is creating more and more bearish conditions for investors. Signs of the same can be seen in the jumps in Realized Losses over the last couple of days. This indicates a significant increase in the number of investors selling their assets at a loss.
This trend suggests that selling sentiment is prevalent in the market. Many investors are likely reacting to recent market conditions by liquidating their holdings.
This theory can be practically observed in the way whales move their assets. Over the last four days, whales have sold about 28 million MATIC to exchanges, worth over $14 million.
Addresses holding between 1 and 10 million MATIC have been dumping their MATIC, bringing the total down from 944 million to 891 million at the time of writing. This development is concerning, as whale investors tend to have a significant impact on the price.
Read more: How to Buy Polygon (MATIC) and Everything You Need to Know
As these whales continue to sell, the price may fall even further, increasing the losses for MATIC holders.
MATIC Price Forecast: How Much Further?
Trading at $0.55, MATIC is already at an eight-month low. It is currently holding above the critical support level of $0.53, which has only been broken twice in two years.
Based on the above factors and the increasing bearish sentiment, it looks like MATIC could break this support again. The likely outcome would be a drop to $0.50, as anything below that could lead to oversold conditions.
Read more: Polygon (MATIC) Price Forecast 2024/2025/2030
However, since this level has already been tested before, if the MATIC price bounces off it, it could reclaim $0.60 as support. This would invalidate the bearish thesis, pushing the price even higher.
