$MATIC | Double Top? McDonald's "M" Upcoming?

$MATIC | Double Top? McDonald's "M" Upcoming?

Here we have one of my personal favorite cryptos & L2 sidechains, $MATIC or Polygon. Potentially we may see, a downtrend because of a couple of factors. Let's zoom in!

I see the potential for a "McDonald's M" or most notably referred to as a Head & Shoulders pattern which could signify a downtrend.

Here are some reasonings & findings:

* $MATIC has touched the 0.8721 area twice now but has pushed through this resistance

* Upper Bollinger Band has been broken previously
* Nearing extreme overbought statuses on the RSI

* After the initial push down from the 0.8721 area, 0.8456 acted as support for the potential "head" of the pattern

* $MATIC is still above the 200 EMA

The last note should be taken into consideration when placing a SHORT trade for $MATIC. It is still above the 200 EMA currently so a safe TAKE PROFT could be back to the "neck line" area of 0.8456 in case there is a bounce and your STOP LOSS above the resistance area of 0.8721.

Happy trading. Not financial advice just thoughts.

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