- Polygon’s native token MATIC price dipped below critical support at $1.04 in the marketwide correction on Friday.
- MATIC needs to reclaim $1.04 as support to prevent mass sell-off of 4.21 billion tokens held by 21,530 addresses.
- MATIC price is at a risk of a 15% decline if its continues its downtrend, with a target of $0.89.
Ethereum network’s largest scaling solution’s native token has yielded nearly 20% losses for holders over the past week. MATIC price nosedived below a critical support level on Friday, the asset needs to make a comeback above $1.04 or it could face a mass sell-off from 21,530 addresses.
Also read: Will Bitcoin begin its recovery rally ahead of US Nonfarm Payrolls data?
MATIC price loses critical support at $1.04
Based on data from crypto intelligence tracker IntoTheBlock, nearly 21,530 wallet addresses accumulated 4.21 billion MATIC tokens above the $1.04 level. This is therefore a critical support level for Polygon network’s native token.
Giving in to the recent uncertainty and correction in the crypto market, MATIC price dropped nearly 20% over the past week. MATIC yielded 6.5% losses since Thursday and the token is trading close to its weekly low of $0.94, based on data from CoinGecko.
If MATIC fails to reclaim key support at $1.04, the altcoin could crumble under mounting selling pressure from 21,530 addresses shedding their token holdings.
Global In/Out of the money
The Ethereum scaling token is in need of an upswing to prevent the wallet addresses from panic selling a large portion of their 4.21 billion MATIC token holdings acquired between $0.99 and $1.07.
If the selling pressure on MATIC rises and the asset’s price continues to decline, it could drop to next support at $0.89, a drawdown of nearly 15%. Nearly 50,000 wallet addresses scooped up 1.09 billion MATIC tokens between the $0.89 and $0.97 level, as seen in the chart above.
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