Shiba Inu, Litecoin, The Sandbox and Two Additional Altcoins Line Up for Pullback: Top Crypto Analyst
A closely watched crypto strategist is issuing a warning to investors saying a handful of altcoins appear poised for a corrective move after rallying over the past two weeks.
Pseudonymous analyst Cheds tells his 275,200 Twitter followers that he is keeping an eye on memecoin Shiba Inu (SHIB), peer-to-peer payment protocol Litecoin (LTC), blockchain-based gaming ecosystem The Sandbox (SAND), decentralized exchange Uniswap (UNI) and blockchain scaling solution Polygon (MATIC).
According to Cheds, crypto bears should keep a close eye on these five altcoins for potential retracements.
Some altcoins worth watching for a short setup$SAND$LTC$SHIB$MATIC$UNI
— Cheds (@BigCheds) 20 July 2022
Cheds also highlights that the market structure of many altcoins looks like the current price action of Litecoin, which he notes is flashing signs of bullish exhaustion after rising over 20% since July 13.
“LTC four-hour [chart] peak shaping head and shoulders. A lot of the market has this kind of look with variations, three to four thrusts with different tops.”
Traders look to the top of the head and shoulders as a sign that a market reversal may be on the horizon.
In the case of Bitcoin (BTC), Cheds warned his supporters last week that the leading crypto asset was beginning to show signs of weakness after one metric flashed a bearish divergence.
“BTC and ETH both on balance volume (OBV) have divergence on daily chart.”
OBV is a technical indicator that measures buying and selling volume while a bearish divergence suggests that a trend reversal may be in sight. According to Cheds, a Bitcoin correction will return to $20,600 Solve OBV bearish divergence.
The crypto analyst also notes that the 200 moving average on the four-hour chart is hovering around $20,000.
“BTC four-hour moving average 200 is right around $20,900.”
At the time of writing, Bitcoin is changing hands for $22,556, down less than 1% on the day.
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