Top trader warns of possible crypto pullback, says Polygon (MATIC) and Cosmos (ATOM) have pure bearish setups
An analyst who continues to build a following with timely altcoin calls predicts a correction across the crypto markets as he looks at Polygon (MATIC) and Cosmos (ATOM).
Pseudonymous analyst Cheds says his 276,700 Twitter followers that crypto markets are flashing more bearish signals after witnessing a relatively strong week.
“Today the crypto market has put out a lot of outdoor bars, high wave lights and dark cloud covers, etc. You want to be asleep at the wheel not to look for short setups in case we stop and follow it.”
Outside bars, high wave candles and dark cloud covers are all candlestick patterns that indicate either indecision among market participants or a possible shift in momentum following a rally.
One altcoin on the trader’s radar is blockchain scaling solution Polygon. According to Cheds, MATIC is currently struggling to take out its immediate resistance around $1.00, suggesting that the altcoin may be poised for a corrective move.
“MATIC another clean short setup should BTC stop. Note $0.9297. Note upthrust on downside feed and potential M [formation].”
Looking at the analyst’s chart, it appears that Cheds is targeting $0.74 for MATIC, indicating a downside risk of nearly 25% at Polygon’s current price of $0.98.
Another altcoin on the trader’s list is Cosmos, an ecosystem of blockchains designed to scale and communicate with each other. According to Cheds, ATOM is a possible target for bears around its current price of $10.78.
“ATOM Possible Short Candidate Here $10,778.”
As for Bitcoin, Cheds says he sees BTC possibly maintaining its bullish momentum until it hits resistance around $26,000.
“BTC eyes May 12 lows as we press recent high.”
At the time of writing, BTC is trading at $23,724.
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