Bullish Signal? MATIC Becomes Top 3 Most Purchased Coin Among Ethereum Whales

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MATIC has struggled in the market recently, even during times of recovery. The coin has been unable to clear the resistance at $1.2 in the last couple of weeks and this has seen it take a beating below $1.1 multiple times. However, times may be changing for the cryptocurrency as the token is beginning to garner the favor of the largest Ethereum whales.

Ethereum Whales Buy MATIC

Data from WhaleStats shows that MATIC has been on the radar of the top 100 Ethereum whales. These large investors have been buying the digital asset in considerable amounts, enough of it that it is now ranking as a top 3 token traded by the largest Ethereum whales.

MATIC trailed behind the likes of USDT and USDC for these large whales, who have also been buying the stablecoins en masse. As for MATIC, they have secured an average purchase amount of $28,928 over the last 24 hours.

This buying spree from these ETH whales has also led to an increase in the amount of MATIC they currently hold. The digital asset is now the 7th largest holding of the top 100 Ethereum whales, with an average amount held of $1.5 million. The coin now makes up 2.98% of their total token holdings. This means that the whales now collectively hold over $150 million worth of MATIC.

MATIC Ethereum whales

In overall trading volume, MATIC is currently seeing the fifth-highest trading volume among ETH whales who have each transacted an average volume of $51,258 worth of the token in the one-day period.

Heading Into Bullish Territory

Naturally, when large whales start accumulating a token, it usually points to bullish trends to come as they reduce the circulating supply of the cryptocurrency in the open market. Hence, it can see the price of the digital asset go up quickly and MATIC is no exception.

Polygon (MATIC) price chart from TradingView.com

With these whales buying up large numbers of the token, it can easily push the price up. Add in the fact that MATIC is currently trading above its 100-day and 200-day moving averages despite the recent decline and it shows a tendency for more upward momentum rather than downward.

There is also support building at the $1.1 level, although this remains a perilous position given that sellers could easily take over once more. But if this support level were to hold going into the weekend, then a recovery coming out of the weekend becomes a more likely possibility, and a retest of the $1.2 resistance level swims into view.

At the time of writing, MATIC is seeing 1.3% losses on the 24-hour chart which has dragged its price to $1.1. It is, however, green on the weekly chart with 1.9% gains.

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