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.