Polygon (MATIC) may end August with a 20% decline over the past week, currently trading at $0.4255. Earlier in mid-August, MATIC saw a strong rally, testing the $0.58 resistance due to strong whale interest. Despite Bitcoin’s broader market trends, MATIC has often shown price divergence, influenced by large holders who control about 70% of its 9.9 billion circulating supply.

AMBCrypto analysis reveals that a top whale holds 36.36% of MATIC's supply, significantly impacting its market dynamics. Recent movements showed a net inflow of $11 million into exchanges, possibly contributing to the price drop. Additionally, MATIC's Open Interest fell 7% to $420 million, reflecting market caution.

Despite the volatility, there's no clear sign of significant selling from top holders. However, the movement of 872 million previously dormant MATIC on August 29 suggests ongoing market uncertainty. Until the supply distribution is more balanced, MATIC may continue to face price fluctuations.