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Polygon (MATIC) Price Forecast: Holding $1 Support or Lower?

The Polygon (MATIC) price managed to bring itself back above the $1 mark this week after nearly closing a daily candlestick below it.

However, despite the bounce back, the altcoin did not manage to revive the investors’ interest, which might cause another decline.

Polygon Investors Are Taking a Break

Polygon investors play a huge role in impacting the direction of the MATIC price, and these holders are taking a turn for the worse. Following the recent correction and the more recent scare of the altcoin losing $1 for good, investors have seemingly decided to pull back for now.

This is evident from the decline in the participation of MATIC holders on the chain. The addresses conducting transactions on the network slipped to 314,000 from the average of 408,000 over the past week.

Polygon Active Addresses. Source: Santiment

However, the existing investors were not the only ones to note a 23% fall in participation as the bearish market cues spooked potential investors as well.

Read More: How To Buy Polygon (MATIC) and Everything You Need To Know

New addresses forming on the network ended up taking a hit, too, as potential MATIC investors turned away due to hesitation. Consequently, the network growth plunged, falling to its lowest point since December 2023.

Polygon Network Growth. Source: Santiment

This indicates that the Polygon native token will probably be available for a while before it becomes the preference of both old and new investors again.

MATIC Price Prediction: An Important Support

MATIC price is trading above the $1 support level at the time of writing, closing in on breaching the resistance marked at $1.02. Nevertheless, considering the aforementioned factors, the chances of a decline below the $1 support are very high.

If the cryptocurrency does end up falling below the $1 mark, it will find some support at $0.92, which will result in a post at $0.88. MATIC will thus register a monthly low.

MATIC/USDT 1-day chart. Source: TradingView

Read More: 14 Best Polygon (MATIC) Wallets in 2024

However, if the $1.02 level is breached, MATIC price can manage to flip the $1.09 resistance level into support, which would invalidate the bearish thesis. This would allow the altcoin to recover its recent losses, too.

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