Polygon (MATIC) price has recovered this week after a negative candlestick appearance and has managed to rise back above the $1 level. However, despite the rebound, the altcoin has not been able to garner much interest from investors, which could open the door to a new decline.
Current State of Polygon Investors
On the Polygon front, investors seem to play a significant role in determining the direction of the native token, MATIC, and things do not seem to be going well. Following the recent correction and the subsequent distancing of the altcoin from the $1 level, investors appear to be acting cautiously.
This situation is evident from the decrease in participation on the chain by MATIC investors. Looking at the number of addresses transacting on the network, there has been a decline from an average of 408,000 to 314,000 over the past week.
However, the potential for a downturn in the market has also caused unease among investors, and those experiencing a 23% drop were not limited to existing investors alone.
The number of new addresses being created on the network has also decreased as potential MATIC investors hold back due to uncertainties. Consequently, while there is general market growth, a decline in Polygon network growth has been observed, reaching its lowest level since December 2023.
This could indicate that it might take some time before MATIC, Polygon’s native token, can reposition itself as a preferred choice among both new and existing investors.
What Will MATIC’s Price Be?
As of this writing, the MATIC price continues to trade above the $1 support level and appears to have surpassed the $1.02 resistance. Nevertheless, considering the factors mentioned above, it could still drop below the $1 support.
If MATIC were to fall below $1, the price could find support at the $0.92 level, but a further drop below this could lead to a descent to the $0.88 region. This could result in MATIC reaching its lowest monthly level.
However, if it manages to stay above the $1.02 level, MATIC’s price could potentially turn the $1.09 resistance into support, which could invalidate any bearish plans.
