Cryptocurrency A crypto analyst closely followed in the world has warned investors that some altcoins that have recovered in the last two weeks are ready to make a correction.
The analyst, known under the pseudonym Cheds, shared the popular meme coin on his Twitter account. shiba inu (SHIB) stated that it is closely watching peer-to-peer payment protocol Litecoin (LTC), blockchain-based gaming ecosystem Snadbox (SAND), and blockchain scaling solution Polygon (MATIC).
According to the analyst, the risk of a potential pullback in these altcoins is quite high, so investors should act with caution.
Some altcoins worth watching for a short setup$SAND$LTC$SHIB$MATIC$UNI https://t.co/SHmhKu9FUc
— Cheds (@BigCheds) July 20, 2022
Cheds is also the market structure of many altcoins. LitecoinHe underlined that the .
“A head and shoulders pattern is forming on the LTC four-hour chart. Most of the market has this type of look with variations, three to four pushes with different peaks. ”
Traders may interpret the top of the head and shoulders as a sign that a market reversal may be on the horizon.
Cheds, who also follows Bitcoin closely, warned his followers last week that BTC was starting to show signs of weakness after one metric showed a bearish trend.
“BTC and ETH both differ by equilibrium volume (OBV) on the daily chart.”
Equilibrium volume, or OBV, is a technical indicator that measures buy and sell volume, and a downtrend indicates a trend reversal. According to Cheds, a Bitcoin correction to $20,600 will resolve the OBV bearish divergence.
The crypto analyst also highlighted that the 200 moving average on the four-hour chart is hovering around $20,000.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.