MATIC, the native token of Polygon Network, has experienced both sides of the crypto market volatility over the past day, with a temporary rise followed by a steady drop in price. In the last 24-hours, the price of the leading altcoin bounced between $0.55 and $0.56, forming a major consolidation zone.
As many MATIC investors speculate on the next movement of the token, popular crypto analyst Ali Martinez has made an interesting prediction that indicates imminent market losses.
MATIC is at risk of a 27% drop in price
through a ex post on mondayAli Martinez alerted the crypto space that MATIC token was in a critical price zone that could result in huge losses for investors.
Related Reading: MATIC Social Sentiment Dips Into Negative Territory – What Impact On Price?
Over the past seven days, MATIC has recorded both negative and positive movements, often taking support at the $0.53-$0.54 price area.
If #polygon Loses $0.54 Support – Protected by 3,770 Addresses Holding Over $70M $matic – It could drop to $0.40! pic.twitter.com/040dv1Mb9P
— Ali (@ali_charts) 28 August 2023
Interestingly, Martinez predicted that if Polygon Native Token loses this support level, it will likely drop to $0.40, indicating a potential 27% drop from MATIC’s current price.
The analyst further emphasizes the importance of this support level, saying that it is “protected” by 3,770 wallet addresses, which collectively hold 70.19 million MATIC tokens.
Looking at the daily chart of MATIC, investors may have real reason to pay attention to Martinez’s prediction as the coin’s price action forms a descending channel.
Based on this pattern, MATIC may post minor gains in the coming days, but its long-term outlook indicates continuation of its current bearish trend. However, investors are reminded that all price predictions are speculative without any guarantees.
MATIC is trading at $0.554 on the daily chart. Source: MATICUSD chart on Tradingview.com
MATIC Daily Active Address Growing
More positive for MATIC is that Polygon Network has experienced a significant increase in its daily active addresses over the past few days, based on data from market intelligence firm Sentiment.
After a steady decline in mid-August, this metric dropped to approximately 182,000 on August 20, a significant improvement, with the number of daily active addresses reaching approximately 264,000 on Monday, August 28. This indicates an increased interest in Polygon despite the slight volatility in the price of MATIC last week.
Related Reading: Polygon (MATIC) Hits June Low Again – Chances for a Rapid Recovery?
In other news, Polygon co-founder Sandeep Naiwal Posted An update on Polygon 2.0 detailing the benefits of MATIC’s proposed upgrade, the POL token.
According to CoinMarketCap data, MATIC is currently trading at $0.55 with a loss of 0.05% over the last day. However, the daily trading volume for the coin turned in the green, rising by 0.52% to $248.56 million. With a market cap of $5.16 billion, MATIC is ranked as the 14th largest cryptocurrency.
Featured image from The One Brief, chart from TradingView.
source: www.newsbtc.com
