This move by Celsius Network hinders Polygon’s (MATIC) projected recovery

After shaking the markets with its bankruptcy in 2022, lending firm Celsius Network liquidates assets amid its restructuring plan. Recently, the firm transferred 34.09 Polygon (MATIC) tokens to Binance.

Celsius Network dumping MATIC

#Celsius Network further deposited 34.09M $MATIC ($25.7M) to #Binance in the past 10 hours.

In the past 2 days, Celsius Network has deposited 56.8M $MATIC ($44.5M) to Binance at $0.784 on average.

For more updates on Celsius Network, follow @spotonchain now and turn on your 🔔… https://t.co/0wYVBi4l7i pic.twitter.com/lWLLwPxpOC

— Spot On Chain (@spotonchain) January 20, 2024

On-chain data shows the firm sent 34.09 Polygon tokens, worth around $25.7 million, to Binance within the last 10 hours. Also, Celsius Network deposited assets worth $44.5 million (56.8 million MATIC units) to the same trading platform at a $0.784 average price early on Friday.

MATIC’s upside journey spoiled

Celsius’ move to sell MATIC has gradually impacted the token’s value, ruining a significant bullish reversal setup. The altcoin has recorded bearishness in the past two days, and maintaining such a stance could end a predicted 68% surge for MATIC.

The altcoin has maintained a rounding bottom setup since May 2023. Further, its many breakout attempts to attain the projected rally bore no fruits within the last two months. The $0.77 stop loss has been a vital support, and breaching it would have canceled the bullish reversal formation, which is what occurred following Friday’s price dip.

MATIC has likely invalidated the bullish setup as it traded at $0.76 during this writing. That might catalyze dips to $0.60. The Relative Strength Index supports the narrative as it exhibits bearishness below the 50 neutral line.

Source – TradingView

Nonetheless, nothing is guaranteed in the volatile crypto sector. Improved cues in the broad market can see MATIC recovering to reclaim the $0.77 crucial support. That would likely welcome upsurges past the resistance at $0.92, canceling the bearish narrative while hitting the 68% rally target.

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