- MATIC price is at risk of decline as it slips below a crucial supply zone where addresses hold 4.13 billion tokens.
- MATIC holders that acquired the token between $0.84 and $0.86 could sell the token to avoid losses.
- The Layer 2 scaling token's price has declined 15% this week.
Polygon network’s native token, MATIC, suffered a double-digit decline in the past week. The cryptocurrency shaved 15% off its price within a 7-day timeframe, and MATIC price is still at risk of further declines.
MATIC slips below a key supply zone, risks price decline
MATIC, one of the largest Layer 2 scaling tokens, slipped below the crucial supply zone that spans $0.84 to $0.86 on Tuesday. As seen in the In/Out of the Money indicator on IntoTheBlock, 14,240 wallet addresses bought 4.13 billion MATIC tokens in the $0.84 to $0.86 price range.
In/Out of the Money indicator for MATIC
MATIC price is exchanging hands at $0.7771, at the time of writing, and the longer Polygon price remains below the crucial zone, the higher the risk of a likely sell-off from the 14,240 wallet addresses that acquired MATIC at this price level. Holders of the Layer 2 token might sell the asset to avoid incurring more significant losses, increasing the selling pressure on MATIC.
These on-chain metrics support MATIC price decline thesis
Network Realized Profit/Loss (NPL) is an on-chain metric that calculates the average daily profit/ loss of all token transactions. It helps determine whether an asset’s holders are booking profits or losses at a given price level.
For MATIC, there are consistent spikes in NPL from November 4 to November 22. This implies MATIC holders sold the token at profits, and engaged in profit-taking in this time frame. Typically profit-taking is bearish for the asset’s price, since it increases the selling pressure.
MATIC NPL and price
Another key metric, supply on exchanges as a percentage of total supply, that tracks the selling pressure on MATIC, observed an increase. Between November 10 and 22, supply on exchanges climbed consistently, from 7.98% to 8.80% while the exchanges, both centralized and decentralized, noted MATIC token inflows. This metric supports a bearish thesis for the asset’s price.
MATIC exchange flow balance and supply on exchanges
At the time of writing, MATIC price is $0.7771, the altcoin’s price has remained largely unchanged in the past 24 hours.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.