According to Whale Alert, a whale has recently moved 52,052,832 Polygon (MATIC) tokens from Binance US to an unknown wallet. The value of the tokens moved is around $42.08 million.
🚨 🚨 52,052,832 #MATIC (42,082,720 USD) transferred from #BinanceUS to unknown wallethttps://t.co/BVAuWnyIsD
— Whale Alert (@whale_alert) June 7, 2023
The reason for the move is most likely because of the U.S. SEC’s (Securities and Exchange Commission) move against Binance and Coinbase. In its lawsuit against Coinbase, the SEC named Polygon (MATIC), Solana (SOL), and Cardano (ADA) as unregistered securites. Other tokens named in the suit include FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI.
The suit may have spooked the whale into removing the tokens from Binance’s American arm. The whale currently faces uncertainty from two ends. Firstly, the Polygon (MATIC) tokens were on Binance, which has been slapped with a lawsuit. Secondly, the whale was holding a token which has been called an unregistered security by the agency. Both developments might have caused the whale to panic.
Will Polygon (MATIC) recover from Binance & Coinbase’s predicament?
Bitcoin (BTC) and Ethereum (ETH) have made gains of 3.3% and 2.4% in the last 24 hours. However, the tokens mentioned by the SEC in its lawsuit are still tumbling since yesterday. MATIC has fallen 3.8% in the last 24 hours and by 10.5% over the previous week.
MATIC is currently facing resistance at $0.8351, with support at $0.7871. The asset is trading at levels last seen in early-January of this year. What this means is that the token has erased all gains that were made over the past few months. Moreover, the token is down by 72.58% from its all-time high of $2.92, attained in December 2021.
According to the machine learning algorithm by PricePredictions, MATIC will continue to fall over the month of June. The site predicts that the token will fall to $0.754323 by June 30.
At press time, MATIC was trading at $0.795186, down by 1.2% in the last hour.