The crypto market continued to experience a downturn, with Bitcoin (BTC) and most major altcoins unable to withstand downward volatility.
Source: CoinMarketCap
Similarly, MATIC also experienced losses, declining by nearly 4% in the past 24 hours, as reported by CoinMarketCap. The native token of the popular layer-2 (L2) network Polygon was trading at $0.71 at the time of writing, marking a 23% decrease compared to the same time last week.
Read more: Solana DEX Trading Surges Past $1 Billion Amid DeFi Regulatory Focus
Whale Activity and Market Sentiment in Bull Markets
In a bull market, sharp corrections are often not viewed with overtly negative sentiment, as they present opportunities for seasoned market players to accumulate coins at lower prices.
On-chain tracker Lookonchain highlighted one such instance where a whale took advantage of the downside to increase their holdings. MATIC stood out prominently among various altcoins, with nearly 2 million tokens being acquired by wealthy investors.
This trend was not isolated, as data from Santiment revealed a noticeable increase in holdings among whale cohorts. The number of wallets holding between 1,000 to 10 million coins surged over the week, accompanied by a significant rise in large transactions exceeding $100,000.
Source: Santiment
These observations suggest that whales were actively buying the dip in MATIC, indicating confidence in the asset's long-term prospects.
Read more: Ripple vs. SEC: Legal Battle Spurs Settlement Speculation
Whale Accumulation and Bullish Sentiment on MATIC
Whales' motivation to accumulate MATIC was driven by their bullish expectations for the asset.
Source: Hyblock Capital on TradingView
Despite experiencing a significant drop, AMBCrypto's analysis of Hyblock Capital's data revealed that nearly 55% of all whale positions for MATIC on Binance were long at the time of writing. This indicated their confidence in a short-term rebound for the cryptocurrency.
Read more: Bitcoin Price Declines Ahead of Halving: Analysts Note Cyclical Trends
Negative Sentiment Impact on Retail Investors
The price slump led to a rise in negative commentary surrounding the coin, as indicated by the negative Weighted Sentiment indicator.
Source: Santiment
Such bearish sentiments have the potential to influence retail investors' participation, as discussions, particularly on social media platforms, can sway their decisions.
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