Cryptocurrency market has entered a period of stagnation in the short-lived rally excited by Ripple’s victory over the SEC. It remains unclear what route Bitcoin and altcoin projects will follow from now on. However, a popular analyst with a bearish position is waiting for MATIC to collapse.
According to the master analyst, this altcoin will see a sharp drop!
The leading cryptocurrency Bitcoin lost 30 thousand dollars, but managed to stay above 29 thousand dollars. However, the negative mood in crypto is not leaving the market. As the rally mood dissipated, bears started to have a say in the market again. As a matter of fact, the popular analyst Crypto Capo, who continues to expect a crash in the market, is waiting for a deep dive for Polygon (MATIC). The analyst suggests that the altcoin price will see a drop of around 60%. For the analyst’s successful forecasts cryptocoin.comCheck out this article.
Sharing his technical analysis, Crypto Capo says that MATIC has set a bear flag. He also states that MATIC has broken this flag downwards. The analyst states that according to his prediction on this formation, MATIC will see a collapse until the $0.29 – $0.30 range. Moreover, Capo argues that this decline will create a domino effect. Thus, by emphasizing the bear position, sharp price decreases are expected across the market.
MATIC price chart. Source: Crypto CapoNew MATIC wallet addresses decreased
Awaiting the clarification of token migration plans, crypto investors have become reluctant to open new MATIC wallets on the Polygon network. Network Growth data compiled by Santiment shows that on July 20, investors opened 2,893 new MATIC wallet addresses. However, by the close of July 26, this number decreased by 78% to only 626 new addresses.
Network Growth. Source: SantimentNetwork Growth roughly estimates the daily rate at which a Blockchain network attracts new users. When it starts to drop as observed above, it indicates that the participation in the network is decreasing. It is noteworthy that this drop in MATIC Network Growth coincided with the POL Tokenomics launch on July 19. If this continues, MATIC may struggle to find enough demand to break out of the current downtrend.
Whale investors also take a negative stance
Also, a price-savvy group of whale investors started taking a bearish position on MATIC. This confirms the concerns surrounding the transition from MATIC to the POL token. Specifically, whales with 10 million to 100 million MATIC balances sold 23 million coins between July 18 and July 27.
Balina Holding Balances. Source: SantimentAt the current market cap of $0.72, withdrawals made by the whales are worth $16.5 million. Historical data shows that the recent buy/sell trends of this particular group of whales are closely correlated with MATIC price movements. Continuing MATIC sales could intensify in the coming weeks if strategic retail investors choose to mirror their transactions.
Altcoin price prediction: $0.70 support crucial
Crypto analyst Ibrahim Ajibade evaluates the technical picture of MATIC. The on-chain indicators above suggest that the bearish momentum in MATIC price will continue if it loses the $0.70 support level. However, 10,000 investors who purchased 270 million MATIC tokens for a minimum price of $0.69 are likely to give initial support. However, if this support buy wall collapses, it is possible for MATIC to drop as low as $0.65.
MATIC NVT ratio. Source: IntoTheBlockStill, an unexpected reversal is likely for the bulls if the last MATIC rises above $0.80. However, as seen above, 51,000 investors who bought 1.34 billion MATIC tokens at a maximum price of $0.80 could slow the rally. However, if this resistance level gives way, MATIC is likely to regain $0.85.
