For Polygon (MATIC), the fourteenth-largest cryptocurrency by market value, cryptocurrency expert Ali has identified a reversal trend. Should this trend continue, MATIC’s price might drop by 16%.
On its four-hour chart, MATIC appears to have formed a head-and-shoulders pattern, according to Ali.
A head-and-shoulders pattern is a chart shape that typically indicates a trend reversal in technical analysis. The pattern is represented by a baseline with three peaks, the biggest peak being in the middle and the other two outside peaks being quite close in height.
https://x.com/ali_charts/status/1726916197826834758?s=20
For Polygon (MATIC), a persistent candlestick at the pattern’s neckline at $0.79 might cause a 16% decline towards $0.67. Nonetheless, an advance over the right shoulder at $0.86 might invalidate the bearish prognosis.
Nov. 14 saw MATIC reach highs of $0.983, capping weeks of rising prices driven by growing whale activity.
Not too long after hitting its peak, MATIC saw a drop in profit-taking around $0.77. A decline below this point might aim for the daily MA 200 support at about $0.679, which is in front of the daily MA 50 at $0.663.
However, as Ali pointed out, if MATIC breaks over the $0.86 level, the $1 level may be seen next. In the last day, MATIC dropped 10.6% to $0.767.
With Polygon 2.0, the company is moving closer to realising its goal of scaling Ethereum to become the internet’s value layer.
The POL token upgrade became active on the Ethereum mainnet last month, marking a significant development for the Polygon blockchain.
