A widely followed crypto analyst predicts that three altcoins, including Solana (SOL) and Polygon (MATIC), look set for a corrective move after rallying from their 2022 lows.
Pseudonymous crypto trader Altcoin Sherpa tells his 179,500 Twitter followers that he expects an indicator on the four-hour chart to act as resistance that could send prices down from SOL, MATIC and LooksRare (LOOKS ) short term.
“Altcoin is expected to pull back slightly here in the near term. 200 Exponential Moving Average [EMA] over the four hours acting as resistance for many; when there is a large gap between the price and [the] 200 [EMA], you will see it act as support or resistance usually. What happens after that is what we have to watch.
Altcoin Sherpa says that the first touch of the 200 EMA on the four chart after a rally often results in a pullback. In the case of the Solana smart contract platform, SOL has rebounded from the low of $26.02 and is now finding resistance at around $40, according to the analyst’s chart.
At the time of writing, Solana is trading at $37.90, down nearly 3% on the day.
The crypto strategist says LOOKS, the Ethereum-based NFT market utility token LooksRare, is in the same boat as SOL. According to Altcoin Sherpa, LOOKS may struggle to break above $0.40 in the near term.
At the time of writing, AppearanceRare is trading at $0.33, up 2.25% in the past 24 hours.
As for Ethereum (ETH) Polygon scaling solution, Altcoin Sherpa says MATIC’s recent move above 200 EMA is a “deviation,” and he expects the altcoin to decline.
At the time of writing, Polygon is valued at $0.51, below the 200 EMA and down more than 6% over the past day.
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