Despite Bearish Netflow, MATIC Price Expected to Surge: A Promising Outlook

Despite a decline in netflow, the price of MATIC is poised for an upward surge. The recent market adjustments have significantly impacted MATIC’s price, resulting in a new yearly low. However, due to increased token holdings by large investors during this downturn, analysts anticipate a short-term surge. Nevertheless, a critical on-chain indicator may pose a challenge to the price momentum.

Whales Smell “Buy the Dip” Opportunity

Bitcoin’s recent drop to $60,000 triggered substantial selling pressure across the altcoin market, affecting MATIC’s price. Yet, savvy investors view this as an opportunity to accumulate MATIC at a discounted price. Notably, major holders (often referred to as whales) have been exceptionally active during this market decline.

The whale accumulation of MATIC has seen a significant increase, with a prominent investor purchasing nearly 2 million tokens. The rising number of wallets holding a substantial amount of altcoins (ranging from 1,000 to 10 million tokens) further highlights this trend.

Additionally, large transactions exceeding $100,000 have surged significantly, indicating concerted efforts by whales to capitalize on the market downturn. According to data from IntoTheBlock, the volume of large transactions has risen from a low of $28 million to over $130 million. Importantly, this indicator surged during MATIC’s decline but later retreated as MATIC’s price soared, suggesting strategic accumulation by whales during the price dip.

As a result, analysts believe that MATIC has established strong support levels, and recent whale buying activity may push the price toward resistance levels.

Netflow Indicator and MATIC’s Next Move

However, the Netflow indicator could defend against sudden price surges for MATIC. It has risen above the positive zone, indicating that inflow exceeds outflow. Currently at 3.5 million MATIC, this indicator may exert additional selling pressure near peak prices.

MATIC’s price has experienced a significant drop, breaking below the crucial support level of $0.9, forming a bearish pattern. However, buyers strongly oppose breaching the $0.6 level. Currently, MATIC is priced at $0.685, with a decline of over 1.4% in the past 24 hours.

Nevertheless, bullish investors still hold hope, as the price remains near the EMA20 trendline, signaling buying interest at lower price levels. Bulls are preparing for a potential recovery, although they may encounter significant selling pressure near the resistance line.

If the resistance line holds, the MATIC/USDT pair could retest the $0.6 support level and potentially drop further to $0.5. A breach below this level could lead to a price decline to $0.35. The first sign of bullish strength will emerge upon breaking the resistance line, potentially propelling the price toward $1.

Sentiment: Positive