Ethereum

Polygon

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Crypto analyst <a href="https://twitter.com/ali_charts/status/1726916197826834758" rel="noopener noreferrer nofollow">Ali</a> 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, <a href="https://u.today/polygon-matic-price-reacts-to-3800-surge-in-whale-activity-details" rel="noopener noreferrer nofollow">MATIC looks</a> 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.
<blockquote>
 <a href="https://twitter.com/hashtag/Polygon?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Polygon</a> | It looks like <a href="https://twitter.com/search?q=%24MATIC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$MATIC</a> formed a head-and-shoulders on its 4-hour chart! A sustained candlestick close below the pattern's neckline at $0.79 could trigger a 16% correction toward $0.67. Invalidation of the bearish outlook comes with an upswing above the right shoulder… <a href="https://t.co/doA2ECdVtH" rel="noopener noreferrer nofollow">pic.twitter.com/doA2ECdVtH</a>— Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1726916197826834758?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">November 21, 2023</a>
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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.
MATIC 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.
<a href="https://u.today/polygon-matic-achieves-23-million-daily-transactions-in-q3-report-shows" rel="noopener noreferrer nofollow">Polygon</a> 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.

Polygon (MATIC) in Danger of Losing 16% If This Pattern Holds True

U_Today

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