Polygon Bearish Signal: Whale Deposits $5M In MATIC To Coinbase

Data shows a Polygon whale has deposited $5 million in MATIC to crypto exchange Coinbase, something that may be bearish for the price of the crypto.

Polygon Whale Moves More Than $5 Million In MATIC To Coinbase

As per data from the crypto transaction tracker service Whale Alert, a sizeable amount of MATIC has moved on the Ethereum blockchain in the past day.

The transfer involved the movement of around 5.5 million MATIC, worth around $5.1 million at the time the transaction was made.

Usually, such large transfers belong to either a single whale, or an entity made up of multiple large investors.

Movements from these holders can have noticeable impacts on the market, depending on why they made the transfer.

Here are some additional details about this Polygon whale transaction that may provide hints as to the purpose behind it:

This large transfer seems to have taken a fee of just $0.60 to be possible | Source: Whale Alert

As you can see above, the sending address in the case of this Polygon transaction was an unknown wallet. Such wallets are usually personal ones, meaning that they aren’t attached to any known centralized platform.

The destination of these coins, on the other hand, was a wallet belonging to the crypto exchange Coinbase.

Transfers like these that go from personal wallets to exchanges are called “exchange inflows.” One of the main reasons investors deposit their MATIC to such platforms is for selling purposes.

Large inflows from the whales can, therefore, be a sign that these humongous holders are dumping their coins, and could hence have bearish effects on the market.

MATIC has so far held tight during the past day, but if this whale really made the latest inflow to prepare for dumping, then the crypto may observe some downtrend in the coming hours.

Interestingly, Whale Alert has also caught two other whale transfers in the past few hours that are even larger than this one. In total, these transactions have seen more than 110 million MATIC shift on the chain.

🚨 25,000,000 #MATIC (23,164,012 USD) transferred from unknown wallet to unknown wallethttps://t.co/wtwlnCBSXA

— Whale Alert (@whale_alert) December 9, 2022

🚨 🚨 🚨 🚨 86,728,379 #MATIC (80,343,079 USD) transferred from unknown wallet to unknown wallethttps://t.co/i1INO3TmFI

— Whale Alert (@whale_alert) December 9, 2022

However, both of the transfers were made between unknown wallets so it’s hard to say what the intent behind them may have been. It could just be whales switching addresses, and if so, there wouldn’t any significant effects on the market from them.

MATIC Price

At the time of writing, Polygon’s price floats around $0.92, up 1% in the last week. Over the past month, the crypto has lost 13% in value.

Looks like the value of the crypto has seen some surge during the past day | Source: MATICUSD on TradingView

Featured image from Mike Doherty on Unsplash.com, chart from TradingView.com