The value of MATIC, the native token of the Polygon network, has fallen significantly. The general cryptocurrency market continues to grapple with negative sentiment, falling more than 10% in the past week and more than 8% in less than 24 hours.
Fortunately, the latest on-chain analysis has revealed important levels for investors to watch out for following the recent MATIC price drop.
Over 10,900 addresses purchased 600 million Polygon tokens at this price.
According to a recent post on X by cryptocurrency expert Ali Martinez, the price of MATIC has established a key support line around the current price range. This assessment is based on on-chain data from analytics company IntoTheBlock, which tracks the average acquisition price of specific wallet addresses.
The distribution of the Polygon token supply across various price ranges | Source: Ali_charts/XAbove is a chart highlighted by Martinez showing the distribution of Polygon token supply across various price ranges. The size of the dots on the chart indicates how much of the coin was purchased at that price range.
Most notably, over 10,900 wallet addresses purchased a whopping 608 million MATIC in the $1.02 and $1.05 areas. According to cryptocurrency analysts, this massive buying activity has helped build important support around this price area.
#polygon It found significant support between $1.02 and $1.05 supported by 10,900 addresses holding about $608 million. #Matic. If this support weakens, the next essential demand zone will be near $0.91, with 35,700 addresses holding a total of $394.6 million. $MATIC. pic.twitter.com/rLn4ymcQf7
— Ali (@ali_charts) March 16, 2024
The large size of the dot reflects the strength of this particular level, but continued bearish pressure could push MATIC price below this support. In this case, investors could see the cryptocurrency price drop to around $0.91.
This makes the $0.89 and $0.92 price range another level to watch, as 35,680 wallet addresses purchased nearly 400 million Polygon tokens and then represents a vital support area.
MATIC Pricing Overview
At the time of writing, the price of MATIC is $1.04, down 8% in the last 24 hours. This price drop comes after the altcoin hit a multi-month high of $1.28 on Thursday, March 14.
According to data from CoinGecko, Polygon Coin has experienced a 9.7% price slump over the past seven days. But from a broader perspective, cryptocurrencies have had quite a positive performance over the past month.
With a market capitalization of over $9.7 billion, the MATIC token is the 18th largest cryptocurrency in its sector.
MATIC price finds support around $1.04 on the daily timeframe | Source: MATICUSDT chart on TradingViewFeatured image by Getty Images, chart by TradingView
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