Polygon (MATIC) price is currently attempting to surpass a crucial resistance level that has confined the altcoin price within a narrow range. The hesitancy of investors to retain the asset, possibly in an effort to offset their losses, is exacerbating this situation. It appears that the actions of asset holders are contributing to the decline in MATIC's price, as recent days have shown no significant price increment, prompting investors to take note of a sell signal within the network.

Factors Contributing to MATIC's Price Decline

This trend can be observed through the divergence in daily active addresses (DAA), where the price of a cryptocurrency and the volume of daily active addresses exhibit contrasting movements. This divergence may signal that the asset is either overvalued or undervalued. In the case of MATIC, both the price and active participation are dwindling, prompting the network to emit a sell signal that may be heeded by individual investors.

Whales, significant holders of MATIC tokens, have evidently aligned with this course through recent transactions. Addresses with holdings ranging from 1 to 10 million MATIC tokens have offloaded more than 23 million tokens, amounting to a supply of $17 million traded within four days, reducing their total holdings to 913 million MATIC.

The actions of this group of investors are notably impactful on prices. When these whales make purchases, the price tends to incline, whereas their sales typically lead to a decline in MATIC's value.

MATIC Price Analysis

The MATIC price has been consolidating within the range of $0.75 and $0.64 in the past month, with both levels serving as repeated tests of resistance and support. The prevailing conditions underscore potential similar outcomes due to investors' cautiousness in adopting a notably bullish stance. The altcoin may experience a drop from its current trading price of $0.69 to $0.64.

A significant breakout or breakdown is necessary to negate the neutral bearish outlook. A breakout would propel the altcoin price to $0.80, whereas a dip below $0.64 could drive it down to $0.60.