Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Crypto analyst Ali has spotted a reversal pattern for the 14th largest cryptocurrency by market capitalization, Polygon (MATIC). If this pattern holds, MATIC might face the risk of a 16% price decline.
According to Ali, MATIC looks to have created a head-and-shoulders pattern on its four-hour chart.
In technical analysis, a head-and-shoulders pattern is a chart formation that frequently signals a trend reversal. The pattern appears as a baseline with three peaks, the outside two of which are near in height and the middle of which is the highest.
In the case of Polygon (MATIC), a sustained candlestick close to the neckline of the pattern around $0.79 might trigger a 16% fall toward $0.67. However, an invalidation of the bearish outlook might come with an upswing above the right shoulder at $0.86.
Tomiwabold OlajideMATIC surged to highs of $0.983 on Nov. 14 after weeks of climbing fueled by increasing whale activity.
Shortly after reaching this high, MATIC experienced a profit-taking decline near the $0.77 mark. A drop below this level might target the daily MA 200 support near $0.679, ahead of the daily MA 50 at $0.663.
On the other hand, if MATIC surpasses the $0.86 level, as highlighted by Ali, the $1 level might come into view next. MATIC was down 10.6% in the last 24 hours to $0.767.
Polygon is presently advancing in its Polygon 2.0 quest, a roadmap for scaling Ethereum to build the value layer of the internet.
In the past month, the POL token upgrade went live on the Ethereum mainnet, representing a major milestone for the Polygon blockchain.
Alex Dovbnya
Vladislav Sopov
Dan Burgin