This summary text is fully AI-generated and may therefore contain errors or be incomplete.
Polygon’s native token, MATIC, experienced a significant drop in value, losing around 15% over the past week. This decline has brought the price of MATIC to $0.77, which is considered below a crucial support zone. If the price continues to stay below this range, there is a higher risk that holders may start selling to avoid substantial losses.According to crypto analyst Ali Martinez, MATIC has fallen below a critical supply range, which spans from $0.84 to $0.86. Within this range, there are over 14,240 addresses holding more than 4.13 billion MATIC tokens. If MATIC’s price remains below this designated zone, it becomes more likely that those who purchased within this range will choose to sell, contributing to a further decline in MATIC’s price.This recent decline comes after a period of bullish activity, during which MATIC surpassed the $0.80 threshold for the first time in three months, reaching $0.96. Various factors influenced this price action, including increased institutional interest in the asset. Additionally, MATIC holders accumulated more tokens during this period, with key wallets holding 100K-10M MATIC amassing over 42 million tokens, equivalent to over $35 million, since October 24.On the development front, the Polygon ecosystem is preparing for significant changes outlined in its recently released 2.0 roadmap. One of these changes includes the transition of the MATIC token to POL.Overall, the recent decline in MATIC’s price raises concerns among investors, as it falls below a crucial support zone. The potential selling pressure from holders within this range could further contribute to the decline. However, the upcoming developments in the Polygon ecosystem, including the transition to POL, may bring new opportunities for the token in the future.