- Celsius Network’s recent aggressive sell-off of 34.09 million Polygon (MATIC) tokens, worth $25.7 million, has disrupted MATIC’s bullish reversal setup, leading to a substantial dip in its price.
- The move, part of the post-bankruptcy liquidation, poses a threat to MATIC’s anticipated recovery, as the altcoin struggles to maintain key support levels and faces potential bearish pressures.
Celsius Network, a key player in the crypto lending space, has unleashed a wave of uncertainty by aggressively dumping Polygon (MATIC) tokens. This strategic move, part of the post-bankruptcy liquidation, has sent shockwaves through the market, particularly affecting MATIC’s bullish reversal setup.
Celsius Network’s MATIC Exodus
In the last 10 hours, Celsius Network executed a significant transfer, sending a staggering 34.09 million MATIC units, valued at approximately $25.7 million, to Binance. Additionally, assets worth $44.5 million (56.8 million MATIC units) were deposited on the same platform at an average price of $0.784. These maneuvers have triggered bearish actions, posing a threat to Polygon’s anticipated recovery.
MATIC’s Upside Journey Jeopardized
The impact of Celsius Network’s decision is evident in MATIC’s recent performance. The altcoin, which had been shaping a bullish reversal since May 2023, faced substantial bearish pressure in the last two days. The failure to sustain its bullish stance not only undermined a predicted 68% surge but also disrupted the rounding bottom setup that had been in play.
The crucial $0.77 support level, a linchpin for MATIC’s bullish reversal, was breached during Friday’s price dip. This breach invalidated the optimistic outlook, pushing the token to trade at $0.76 at the time of writing. With the Relative Strength Index signaling bearishness below the 50 neutral line, the outlook for MATIC seems uncertain, potentially catalyzing further dips to $0.60.
A Glimmer of Hope Amidst Uncertainty
While the crypto sector remains highly volatile, there is a glimmer of hope for MATIC’s recovery. Market dynamics can swiftly change, and improved cues may pave the way for MATIC to reclaim the crucial $0.77 support. A resurgence beyond the resistance at $0.92 could nullify the bearish narrative and reignite the potential for a 68% rally.
In conclusion, Celsius Network’s aggressive sell-off of MATIC tokens has cast a shadow over Polygon’s projected recovery. The market now waits with bated breath to see if MATIC can weather the storm, with potential recovery hinging on broader market conditions.
