●FTX exchange and two wallets from Polygon Ecosystem Growth deposited a total of 28 million MATIC tokens to exchanges.
●The Polygon wallet transferred 217 million MATIC tokens to 70 different wallets on November 15.
●MATIC price trend turned bearish, yielding 10% weekly losses to holders.
Polygon’s native token MATIC observed a spike in inflow to exchanges, increasing the selling pressure on the asset. MATIC price yielded double-digit losses for holders in the past week. The Ethereum scaling token’s on-chain metrics present a bearish outlook on MATIC price.
MATIC inflow to exchanges
Based on data from crypto intelligence tracker, Lookonchain, the bankrupt FTX exchange transferred 8 million MATIC tokens worth $5.95 million to OKX exchange. Further, two wallets that received MATIC from the Polygon Ecosystem Growth wallet address, deposited 20 million MATIC tokens worth $14.86 million to Binance.
MATIC deposited to exchanges
All the above mentioned transactions took place early on Tuesday, a total of 28 million MATIC tokens flooded centralized exchanges, contributing to the rising selling pressure on MATIC. MATIC’s on-chain metrics acted as bearish catalysts for the altcoin’s price.
On-chain metrics present bearish outlook
The Supply on Exchanges and Exchange Flow Balance metrics can be used to identify the selling pressure on an asset and the likely direction of its price trend.
MATIC Supply on Exchanges has climbed from 7.99% to 9.05% of the total supply, between November 11 and 28. Exchange Flow Balance shows spikes in inflow in the days leading up to MATIC price decline, in the past week, seen in the chart below:
MATIC Supply on Exchanges and Exchange Flow Balance, Source: Santiment.
Another key metric, Network Realized Profit/Loss (NPL) shows spikes in profit-taking by MATIC holders. Large spikes indicate that large number of holders have engaged in booking profits, contributing to the selling pressure on the scaling token. This indicator presents a bearish outlook on MATIC.
Network Realized Profit/Loss, Source: Santiment.
At the time of writing, MATIC price is $0.7347 on Binance. The Ethereum scaling token yielded nearly 10% losses in the past week.
