Shiba Inu, Litecoin, The Sandbox and Two Additional Altcoins Set Up for Pullback: Top Crypto Analyst
A close crypto strategist issued a warning to investors, saying that a handful of altcoins are ready for a corrective move after rallying over the past two weeks.
Pseudonymous analyst Chads told his 275,200 Twitter followers that he is interested in Memecoin Shiba Inu (SHIB), peer-to-peer payment protocol Litecoin (LTC), blockchain-based gaming ecosystem The Sandbox (SAND), decentralized exchange Uniswap (UNI). Keeping an eye on. and Blockchain Scaling Solution Polygon (MATIC).
According to Chads, crypto bears should watch these five altcoins closely for a possible retracement.
— Cheds (@BigCheds) 20 July 2022
Chads also highlighted that the market structure of many altcoins looks similar to Litecoin’s current price action, which he noted is a sign of bullish exhaustion after a rally of more than 20% since July 13.
“LTC Four Hours” [chart] Head and shoulders top formation. There are variations like this in most markets, three to four thrusts with different peaks.
Traders look to the head and shoulders as a sign that a reversal is likely in the market.
For Bitcoin (BTC), Cheds warning His followers said last week that the major crypto asset was starting to show signs of weakness following a bearish divergence of a metric.
“Both BTC and ETH vary with On-Balance Volume (OBV) on the daily chart.”
OBV is a technical indicator that measures buying and selling volume whereas a bearish divergence indicates that a trend reversal may be taking place. According to Chads, a Bitcoin Correction Will Return to $20,600 to solve OBV Bearish Divergence.
The crypto analyst also noted that the 200 moving average is hovering near $20,000 on the four-hour chart.
“The BTC four-hour SMA is near the $200 level at $20,900.”
At the time of writing, bitcoin was swapping hands for $22,556, down less than 1% on the day.
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