Volatile price momentum is nothing new in the cryptocurrency industry. As far as the Matic price is concerned, however, it would appear the bubble has burst in a violent manner.
A lot of Matic traders have lost good money following this drop, yet some still hold out hope it is only a “flesh wound”.
The Steady Matic Price Pump
As altcoin traders still eagerly await the next Altcoin Season, it was only a matter of time until some markets showed abnormal behavior. Matic is the market most people flocked to over the past two weeks. This is primarily because the Matic price remained very flat near the $0.014 mark for quite some time. Traders utilizing technical indicators wouldn’t have expected any real momentum to materialize.
Big was everyone’s surprise when the Matic price suddenly started moving up. Slowly and steadily at first, yet the pump lasted nearly two full weeks before the market collapsed entirely. During this two-week pump, the value of MATIC jumped as high as $0.043838, resulting in an all-time high for this altcoin. While traders were impressed, everyone knew this market would collapse sooner rather than later.
Followed by an Epic Dump and Tears
Overnight, the Matic price momentum took a turn for the worse. This was entirely to be expected, as such a near 250% increase in price can never be sustained if Bitcoin doesn’t follow the same pattern.
For MATIC traders, the value dropped back to $0.016683, negating almost all of the previous gains in just a few hours. That is the cycle of pump-and-dump coins, yet it would appear that many traders still fall for this blatant manipulation.
Social Media Sentiment Sours
There are plenty of cryptocurrency enthusiasts commenting on the Matic price situation on Twitter. Wilco van Boxtel is one of those users who saw this dump coming from miles away. Even so, he still seems to hold out hope for a second MATIC pump, as unlikely as that might seem. Some people are desperate to make a quick buck, it seems.
Welcome to the MATIC Pump and Dump, this was expected with all Crypto down and a few up, are doomed to come back down. Doesn't mean it's over though.. #MATIC #crypto #cryptocurrency pic.twitter.com/AaYtWRXYa8
— 𝙒𝙞𝙡𝙘𝙤 𝘷𝘢𝘯 𝘽𝙤𝙭𝙩𝙚𝙡 🛡⚡🚀🧲🧭🌞 (@nuonrg) December 10, 2019
Takeshi Katsuro has a different opinion. It never takes long until the first conspiracy theories surface after a market is manipulated. According to this individual, both Binance and Coinbase are behind the Matic price crash. An interesting train of thought, albeit it is evident traders simply cashed out their profits.
Some interesting evidence is provided by Samuel JJ Gosling. He shared an image of how the Matic Network Foundation allegedly transferred a portion of its holdings over the past few weeks. Although this represents just 3% of the supply, it could have made an impact on the Matic price. A follow-up blog post by the project indicates this was a regular token unlocking, and the foundation tokens haven’t moved.
I just want to deeply apologise for providing an inaccurate claim, it turns out it was only 381,903,830 $MATIC (3% of the supply) that "seems" has been liquidated, I made a miscalculation and included inputs as well as outputs in my computation. https://t.co/BHFu5GW0A2 pic.twitter.com/9xdoC19Ga6
— Samuel JJ Gosling (@xGozzy) December 10, 2019
Matic had NO role to play in all this.
For token movement, We announced the release of ~0.25% (248mn) tokens as Oct unlock, which coincides with aggregated outward movement.
Foundation tokens are still there.https://t.co/BhDDqFWF6H
MATIC will bounce back stronger than ever!
— Matic (@maticnetwork) December 10, 2019
All things considered, it would not be surprising to see another Matic price pump-and-dump take place. Altcoin traders have thirsted for some market action, and they will chase every opportunity provided to them. Moreover, the recent market momentum could trick newcomers into thinking the value will increase again. Bagholders will prey upon those who think this is a temporary setback and try to unload their holdings accordingly.