A widely followed crypto analyst is predicting that three altcoins, including Solana (SOL) and Polygon (MATIC), appear poised for a corrective move after rallying from their 2022 lows.
Pseudonymous crypto trader Altcoin Sherpa tells his 179,500 Twitter followers that he expects one indicator on the four-hour chart to act as a resistance that could send the prices of SOL, MATIC and LooksRare (LOOKS) tumbling in the short term.
“Expected a slight altcoin pullback here in the short term. 200 exponential moving average [EMA] on the four-hour acting as resistance for many; when there is a large gap between price and [the] 200 [EMA], you’ll see it act as support or resistance usually. What happens after this is what we need to watch.”
Altcoin Sherpa says the first touch of the 200 EMA on the four-chart after a rally often results in a pullback. In the case of smart contract platform Solana, SOL has rallied from the low of $26.02 and is now finding resistance at around $40, according to the analyst’s chart.
At time of writing, Solana is trading for $37.90, down almost 3% on the day.
The crypto strategist says LOOKS, the utility token of the Ethereum-based NFT marketplace LooksRare, is on the same boat as SOL. According to Altcoin Sherpa, LOOKS could struggle to go above $0.40 in the short term.
At time of writing, LooksRare is trading for $0.33, up 2.25% over the last 24 hours.
As for Ethereum (ETH) scaling solution Polygon, Altcoin Sherpa says MATIC’s recent move above the 200 EMA is a “deviation,” and he expects the altcoin to move lower.