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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.
Arman Shirinyan
Dan Burgin
Alex Dovbnya