According to technical analyst Ali, Polygon (MATIC) faces downside risk after forming a bearish head-and-shoulders chart pattern on its 4-hour timeframe.
Ali highlights how MATIC recently forged the right shoulder of this reversal formation, with the neckline support at $0.79. He notes that if MATIC closes decisively below $0.79 on a sustained timeframe, the head-and-shoulders target projects a 16% sell-off towards the $0.67 level.
Traders should watch $0.79 closely as a trigger point for possible MATIC weakness ahead. According to Ali, invalidation of the bearish thesis only comes if MATIC reclaims the recent right shoulder high around $0.86, signaling bulls have re-established control.
If bears do force a neckline breakdown, the crowd psychology driving head-and-shoulders patterns suggests many nervous MATIC longs would likely cut losses and accelerate selling pressure around $0.67.
Read also:
- Litecoin Whale Activity Could Foreshadow Next Bull Run While Solana Flashes Sell Signal
- Shiba Inu Magazine Highlights Welly’s Commitment to Shibarium Blockchain
- Benjamin Cowen Predicts Bitcoin’s Rise to $100K by 2025; InQubeta Celebrates $5M Presale Triumph
In summary, while no outcome is guaranteed, Ali illustrates an emerging risk for MATIC holders from a technical perspective. MATIC’s recent rally appears exhausted, and failure to reclaim $0.86 could open the door to significant downside. Traders should plan risk management around the make-or-break $0.79 level during coming days.
Join and Get 10k Tokens FREE!
Engaging community with games and crypto incentives
Integrated platform with GameFi and NFT functionalities
Simple interface that’s easy for new users to explore crypto gaming