MATIC Risks Heavy Decline If It Falls Below This Price Level, Analyst Says

MATIC Risks Heavy Decline If It Falls Below This Price Level, Analyst Says

Time Stamp: August 29, 2023 11:32 AM
Source Node: 2852077

MATIC, the native token of the Polygon network, has experienced both sides of the crypto market volatility in the last day, with a temporary boost followed by a steady price decline. Over the past 24 hours, the prominent altcoin has had its price bounce between $0.55 and $0.56, forming a major consolidation zone.

As many MATIC investors speculate on the token’s next movement, popular crypto analyst Ali Martinez has given an interesting prediction that implies an impending market loss.

MATIC In Danger Of 27% Price Decline

Via an X Post on Monday, Ali Martinez alerted the crypto space that the MATIC token was in a critical price zone, which could result in heavy investor losses. 

Related Reading: MATIC Social Sentiment Slides To Negative Territory – What’s The Impact On Price?

Over the last seven days, MATIC has recorded both negative and positive movements, often finding support at the $0.53-$0.54 price zone. 

Interestingly,  Martinez predicts that if the Polygon native token lost this support level, it would likely fall as low as $0.40, representing a potential 27% decline from MATIC’s current price. 

The analyst further emphasizes the importance of this support level, stating it is “guarded” by 3,770 wallet addresses that collectively own 70.19 million MATIC tokens. 

Looking at MATIC’s daily chart, investors may have real cause to pay attention to Martinez’s prediction as the token’s price movement forms a descending channel. 

Based on this pattern, MATIC could likely record little gains in the coming days, but its long-term outlook indicates the continuation of its current bearish trend. However, investors are reminded that all price predictions are speculative with no guarantees. 

MATIC

MATIC Daily Active Address On the Rise

On a more positive note for MATIC, the Polygon network has experienced a significant rise in its daily active addresses over the last few days based on data from market intelligence firm Santiment.

Following a steady decline in mid-August that saw this metric fall to around 182,000 on August 20, there has been a notable recovery, with the daily active address count reaching about 264,000 on Monday, August 28. This indicates an increased interest in Polygon despite MATIC’s little price movement in the last week. 

Related Reading: Polygon (MATIC) At June Lows Again – Prospects For Bullish Recovery?

In other news, Polygon co-founder Sandeep Naiwal has posted an update on Polygon 2.0 detailing the benefits of MATIC’s proposed upgrade, the POL token. 

According to data from CoinMarketCap, MATIC is currently trading at $0.55 with a 0.05% loss in the last day. However, the token’s daily trading volume is on the green side, rising by 0.52% to be valued at $248.56 million. With a market cap of $5.16 billion, MATIC is ranked as the 14th largest cryptocurrency. 

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