MATIC price is at risk of further decline despite rise in active addresses

The largest Ethereum scaling token Polygon’s native asset MATIC suffered a correction in its price despite the bullish on-chain metrics. MATIC price could plummet below crucial support at $1 if the correction ensues. 

Also read: Polygon powers restaking protocol developing L2 chain, plugs into MATIC’s AggLayer

MATIC price risks further decline against signs from on-chain metrics

Throughout March 2024, Polygon Network’s active addresses climbed steadily. On-chain metrics from Santiment suggest that MATIC’s network grew consistently, the Network Growth metric and the Active Address chart shows a consistent climb. 

Active Addresses and Network Growth MATIC. Source: Santiment 

These metrics signal growth, however, MATIC price declined nearly 10% on a weekly timeframe. Data from CoinGecko shows a market wide correction in Ethereum Layer 2 tokens, including MATIC. Immutable (IMX), Optimism (OP), Mantle (MNT), Arbitrum (ARB), Starknet (STRK), and Manta Network (MANTA) price gave between 5% and 10% losses in the past 24 hours. 

Ethereum Layer 2 token prices. Source: CoinGecko 

MATIC price is $1.04, at the time of writing. Data from IntoTheBlock shows a decline below the current range where 11,160 addresses bought 363.59 million MATIC tokens could result in a drop to $0.91 support level. MATIC is currently in a crucial zone. 

Global In/out of the Money. Source: IntoTheBlock 

In the past week, MATIC price dipped nearly 10%.