Cardano (ADA) has finally touched the bottom of the pitchfork formation it has been trading in. The above chart for ADA/BTC on the daily time frame proves that sometimes it is best to let the market run its course rather than to enter a position and wish for a miracle to happen. When Cardano (ADA) entered the last segment of the pitchfork formation against Bitcoin (BTC), few analysts might have expected it to fall all the way to the bottom because that would have meant a break of market structure for Cardano (ADA) against the US Dollar (USD). However, as we have seen in this market, the price in US (US Dollar) does not matter as much as the price against Bitcoin (BTC) does.
As most coins sing to the tune of Bitcoin (BTC), it makes more sense to lend more credibility and importance to ADA/BTC over ADA/USD in technical analysis. Currently, Cardano (ADA) has reached rock bottom against Bitcoin (BTC) and is now all set for an explosive rise. The above chart for ADA/BTC also shows that Cardano (ADA) is now stranger to aggressive price rallies. As is the case with most altcoins, Cardano (ADA) too has a tendency to make most of these gains in a matter of just a few weeks. A close look at this chart explains that there is every reason to expect that a similar rise in the price of Cardano (ADA) against Bitcoin (BTC) is to be expected in the latter half of this year as well.
It is natural to expect that the sentiment just before this rally will be extremely bearish otherwise there wouldn’t be any reversal. Cardano (ADA) has had more than a 90% correction and yet most people in the crypto community at the moment still expect it to go down further. A trend reversal only takes place when the positive or hopeful sentiment in the market is completely obliterated. It is true that a lot of cryptocurrencies have shown signs of strength over the past 24 hours and it does not take long for sentiment to shift in this market. However, investors should still be mindful that a lot of new big players have entered the game and they do not play by the same rules.
In the past few months, many government officials across the globe have warned the public regarding manipulation in an unregulated market like this. As the above chart for ADA/USD shows, the price of Cardano (ADA) broke market structure when it fell through the strong $0.079 support. If this had been another market, investors would have taken it as a sign of bearish continuation and would have expected the market to enter another correction. However, in this case it was just manipulation to scare investors into selling their tokens to the big whales for lower prices. Fortunately for believers in cryptocurrencies, most such weak hands are already out of the game. They may not come back for now, but who knows maybe they will come back later to buy at the top again.
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