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.