MATIC Whale has been dumping on the market and it's (possibly) not over yet

On-chain analysis identified the movement of one of MATIC's biggest whales, correlating some of its transfers with sharp price drops in Polygon's token, indicating a possible exit. And there are still about 39M left at the address 0xaac22*.

This was originally published at my substack — You can access the OP for links and images.
https://vinibarbosa.substack.com/p/matic-whale-has-been-dumping-on-the

-

MATIC “dumps” send the price down

On November 15, 2022, the whale whose address begins with [0xaac22\*], redeemed an old staking of 79.38M from MATIC staking smart contract and started making partial transfers of this amount to the Binance hot wallet.

Each new transfer occurred just before aggressive price declines, signaling possible dumps from the whale.

I checked MATIC's whale information and transfers involving possible dumps and price drops were as follows, with their approximate values at the time of transfer:

• 11/15 – 79,386,224 MATIC (~$74.63M USD); 7.0% drop in price; withdrawal from the staking contract.
• 11/18 – 5,000,000 MATIC (~$4.40M USD); 4.4% drop in price; Tx to Binance.
• 11/21 – 10,000,000 MATIC (~$7.96M USD); 3.1% drop in price; Tx to Binance.
• 11/22 – 9,000,000 MATIC (~$7.65M USD); 2.9% drop in price; Tx to Binance.
• 11/24 – 9,000,000 MATIC (~$7.65M USD); 6.0% drop in price; Tx to Binance.
• 11/27 – 10,000,000 MATIC (~$8.45M USD); 6.9% drop in price; Tx to Binance.

The current balance of MATIC's Whale is 36,460,765.58(…) which equals around $29,878,103.79, with today's price.

It is possible that more dumps will continue to occur in the coming days, according to the pattern that has already been presented.

MATIC Whale (0xaac22…)

When studying the history of this MATIC Whale whose address is [0xaac22b3c17d3b31c6d0d7a9b6dd7a0a797c40339], we see that its first purchase took place on July 6th, 2021, in the amount of 100 MATIC. Appearing to be some kind of test.

The second purchase was much more relevant, totaling 60,000,000 MATIC, made at CryptoCom three days later (July 9, 2021). The corresponding amount would be $63.08 million, on the day of transfer to the 0xaac22 wallet.

That amount was almost immediately moved into the Polygon staking smart contract.

The MATIC Whale continued to accumulate until it reached approximately 79 million of the tokens that were staked. There are other smaller movements indicating possible trades over the period.

This address has been on Polygon's richest list for months, but now appears to indicate that it is interested in exiting its MATIC position. What would have motivated this decision?