MATIC, the native token of the Polygon network, has experienced a significant decrease in its value. It has dropped by more than 10% over the past week and 8% in less than 24 hours. These poor performance results align with the current state of the cryptocurrency market, which is facing negative sentiment.
Despite the downturn, there is some positive news for investors. Recent on-chain analysis has identified key levels that should be monitored following the decline in the MATIC price. As per analytics firm IntoTheBlock’s data, which tracks the average acquisition price for wallet addresses, a crucial support level has been established near the current price point.
The distribution of the Polygon token supply across different price ranges indicates that over 10,900 wallet addresses have purchased a significant amount of MATIC tokens (around 608 million) in the $1.02 to $1.05 range. This substantial buying activity has played a role in supporting the establishment of crucial support at this price level, leading to cautious optimism among analysts.
However, if sustained bearish pressure continues, there is a possibility that the price of MATIC could breach and fall below this support. In such a scenario, the next essential demand zone is expected to be around $0.91, where 35,700 addresses collectively hold 394.6 million MATIC tokens.
As of now, MATIC is trading at $1.04, experiencing an 8% decline in the past 24 hours. This decrease comes after the altcoin reached a multi-month high of $1.28 on March 14. Within the past month, the cryptocurrency has performed fairly well, despite a 9.7% slump in the last seven days.
With a market capitalization of over $9.7 billion, MATIC currently ranks as the 18th-largest cryptocurrency in the market. However, it is crucial to note that investing in cryptocurrencies carries risks, and it is always recommended to conduct thorough research before making any investment decisions.