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.

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%.

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