Crypto Strategist Warns Solana (SOL), Polygon (MATIC) and One Additional Altcoin Primed for Pullbacks

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.”

Source: Altcoin Sherpa/Twitter

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.

Source: Altcoin Sherpa/Twitter

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.

Source: Altcoin Sherpa/Twitter

At time of writing, Polygon is valued at $0.51, below the 200 EMA and down over 6% in the past day.

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Featured Image: Shutterstock/jossnat

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