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According to Cheds, crypto bears should closely watch these five altcoins for potential retracements.
Shiba Inu, Litecoin, Sandbox and two additional altcoins are some of the altcoins that seem ready for a correction after rallying for the past two weeks on the warnings of some of the top crypto strategists.
Pseudonym analyst Cheds said he used 275,200 Twitter followers with Shiba Inu Memecoin (SHIB), Peer-to-Peer payment protocol Litecoin (LTC), blockchain-based gaming ecosystem The Sandbox (SAND), and decentralized Keepaeye. Told. With Exchange Uniswap (UNI). And blockchain scaling solution Polygon (MATIC).
According to Cheds, bears need to closely monitor these five altcoins for potential rallies.
Cheds also emphasized that the market structure of many altcoins resembles the current price behavior of Litecoin, which he notes is flashing signs of bullish exhaustion after rallying over 20% since July 13th.
“Forming the top of the head and shoulders on LTC’s 4-hour [chart]. The majority of the market has this styling with variations, three to four pushes with different peaks.”
Traders see the top of the head and shoulders as a sign that a market reversal may be imminent.
Regarding Bitcoin (BTC), Cheds warned followers last week that major crypto assets have shown signs of weakness after showing a bearish divergence.
“Both BTC and ETH with balanced volume (OBV) have divergences on the daily chart.”
The OBV is a technical indicator that measures the volume of buying, selling and a bearish divergence indicates that a trend reversal can occur. According to Cheds, returning Bitcoin to $20,600 reveals a bearish OBV difference.
Cryptographic analysts also pointed out that the 200 moving average of the 4-hour chart fluctuates at around $20,000.
“The four-hour moving average of the BTC 200 is right around $20,900.” At the time of writing, Bitcoin is trading at $22,556, down less than 1% on the day.
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