Bitcoin‘s (BTC) recent price fluctuations have attracted significant attention, with its value forming a long lower wick, indicating heightened volatility often associated with considerable profits. Despite this, altcoins could face larger losses, raising questions about which ones might see prices dip to around one dollar.
MATIC’s Market Performance Reviewed
Polygon’s MATIC Coin, trading at $1.21, had a 3.6% decrease. While BTC dropped to about $71,500, losing 2%. MATIC Coin had held up well during 2022’s market downturn but didn’t keep up with recovery expectations in the following year. Nevertheless, MATIC managed to break the $1.20 barrier after a long period, thanks to a surge in optimism for 2024. MATIC’s daily active addresses increased notably from February 13 to March 7, correlating with a more than 30% price recovery over three weeks. However, this upward momentum stalled after March 7, with the price potentially testing the one-dollar mark in the face of a BTC decline.
The Decline in Whale Activity
MATIC’s price concerns are exacerbated by the reduced number of large-scale holders, or ‘whales,’ with over one million MATIC. Their count fell from 276 to 258 between March 2 and March 14. This selling by whales, occurring alongside BTC potentially peaking, suggests a move to liquidate holdings for cash. Although MATIC Coin saw a 10% increase during this whale sell-off period, its performance lagged behind most top 20 cryptocurrencies, with only XRP and ICP faring worse.
As the market stands, MATIC Coin might retreat to support levels at $1.12 and $1.08, and possibly to one dollar. Alternatively, should the price close above $1.23, MATIC could ascend to $1.34, marking the highest price point since April 2022.