The current scenario of the cryptocurrency market is quite bearish, with overall negative sentiment following the approval of the spot Bitcoin Exchange Traded Fund (ETF). Amid this ongoing bearish sentiment, Polygon (MATIC) is continuously facing selling pressure as bears dominate the market.
Celsius deposits over 25 million MATIC token
On January 18, 2024, an on-chain analytics firm, Spot On Chain, made a post on X (previously Twitter) while mentioning Celsius Network. According to the firm, Celsius has deposited over 25.75 million MATIC tokens worth around $21.26 million to the centralized exchange with an average price of $0.82.
The on-chain analytics firm also highlights small details, such as Celsius depositing over 22.7 million tokens worth around $18.79 million and 3.02 million MATIC tokens on Crypto.com. Currently, Celsius Network holds over 34 million MATIC tokens worth around $27.5 million in their address.
This deposit on these exchanges suggests that, amidst the selling pressure in the cryptocurrency industry, Celsius is currently dumping MATIC. Another reason behind this dumping is the bearish price action pattern on the MATIC chart on a daily time frame.
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MATIC’s price technical analysis
According to expert technical analysis, MATIC on the daily time frame has experienced a breakdown of a head and shoulders bearish price action pattern and is currently retesting its breakdown level. This is the same level where MATIC is receiving support from the 200 EMA (Exponential Moving Average), but the current bearish sentiment makes it appear completely bearish.
Apart from this support from the 200 EMA, in the upcoming days, we may see a bearish golden crossover. This will happen because the 50 EMA is also moving toward the 200 EMA, and the current breakdown also supports this upcoming bearish golden crossover. However, in the future, we may experience an additional more than 8% MATIC price drop to $0.72.
Additionally, with this bearish price movement in MATIC, its market cap has plummeted to the 15th position from the 12th position. Currently, MATIC is trading near $0.79, and in the last 24 hours, it has experienced over a 2% price drop. If we look at MATIC over a longer period, in the last 7 days, it has experienced over a 13% price drop, and in the last 30 trading days, the MATIC price is up by 2%.
This indicates that before the approval of the spot Bitcoin ETF, MATIC surged significantly, but following the approval of the Bitcoin ETF, investors and crypto whales dumped their holdings as they booked their profits. The current situation suggests that whales and investors are not only booking their profits in MATIC but also in other altcoins.
