Polygon (MATIC) Price Bounces with Whale Investors Defying SEC Concerns

Polygon (MATIC) has experienced a weekly 14% rebound, despite being listed as one of the tokens listed as a security by the US Securities and Exchange Commission (SEC). The leading Ethereum layer-2 solution provider has responded to this by rejecting the notion. This has particularly resonated among institutional investors, who have increased their trading activity. Moreover, the team behind Polygon has launched the Polygon 2.0 product, which aims to establish a ‘Value Layer’ for the internet. All of these factors are likely to contribute to MATIC’s price rebound towards $0.75, albeit its bulls would need to surpass the initial resistance level of $0.68. Large transactions, real-time changes in the trading activity of whale investors through the daily number of transactions exceeding $100,000, have increased by 680% indicating that strategic whale investors are taking advantage of the price dip to buy more MATIC.

Polygon Whale Investors Are Defying SEC Concerns

Interestingly, rather than retreating, MATIC whale investors have intensified their trading activity since the SEC ordeal began last week.  
Large Transactions involving MATIC jumped by 680% from 37 transactions on June 4 to a two-month peak of 289 transactions on June 10, and as of June 13, the Polygon network recorded another 118. This suggests that strategic whale investors with deep pockets are taking advantage of the price dip to accumulate more MATIC, signalling an imminent rebound.

Negative Social Sentiment And Its Effect On MATIC

While whale investors show signs of resilience, the general mood surrounding Polygon remains largely negative. Indicatively, MATIC’s social volume has dropped to its lowest since September 2022. Esentially, the social volume tracks the number of times a project is mentioned across relevant crypto media channels, and it has declined by a massive 1200%, coming from 1302 mentions on June 6 to 140 mentions at the close of June 12. If Polygon’s ‘Social Volume’ is still at a relatively low level, strategic investors may assume that MATIC has reached its turning point.

Maintaining the Upward Trend and Achieving $0.75

If the Polygon 2.0 launch rekindles investors’ confidence, the MATIC price will likely rebound towards $0.75. However, for the bulls to be confident, MATIC needs to surpass its initial resistance at $0.68. According to IntoTheBlock’s In/Out of The Money Around Price (IOMAP) data, investors who bought 103.79 million MATIC at the average price of $0.68 could cause a pullback should the resistance zone persist. Conversely, if that zone is cleared, MATIC will achieve its $0.75 price target. If, however, the bears take control again and MATIC drops below the critical $0.60 support zone, the 5,550 investors who purchased 94.6 million MATIC at the minimum price of $0.61 will likely prevent the drop. But if that support level cannot hold, MATIC price could still retract further towards $0.55