MATIC price is at risk of further decline despite rise in active addresses
- Polygon’s native token sees correction despite increase in its active addresses and network growth.
- MATIC price declines to $1 support amidst ongoing correction in Layer 2 tokens.
- The Ethereum scaling token leads the decline among tokens like Optimism, Mantle, Arbitrum, Starknet and others.
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.
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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%.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
