Altcoins and their price movements are supposed to follow Bitcoin forever. But somehow, despite weak market signals and bitcoin bearish movement, some altcoins seem to be carving their own path. However, the two major altcoins have quietly prepared for a major trend reversal on the charts. So now is the perfect time to buy them? These metrics can help you figure it out.
Are these altcoins about to flip?
Unsurprisingly, Cardano and Chainlink were the first to turn around. For a long time, the upcoming release of Cardano Goguen smart contracts kept everyone on their feet. Chainlink, on the other hand, has successfully added over 1.4 new partners every day since early 2021. This shows that people have been optimistic for a while now, it’s just a market that needs to turn around.
To confirm the aforementioned prediction, take a look at the network value to transaction (NVT) ratio. The extreme deviation can be seen on both Cardano and Chainlink charts. Such a deviation is usually considered a signal for a trend reversal in favor of bullish momentum.
In addition, it was observed that on-chain development for both networks has been consistently strong. Having risen in the past few weeks, they are strong evidence of any bullish reversal in the future. In addition, the number of coins has indeed increased slightly recently, despite the minimal market movement. If the prices of these altcoins go up, these numbers are bound to go up.
When to buy them?
According to popular analyst Michael Van De Poppe, ADA is currently stuck in a consolidation phase. Right now, $ 1-1.14 remains critical support, setting a critical breakdown at $ 1.31. Historically, $ 1.48 has been important to understand the trend as price has tested this range, turning it into strong resistance on the charts.
Chainlink is also making lower highs and rejecting previous support levels. 49k Sats is needed to regain lost bullish momentum and capitalize on the aforementioned indicators.
Earlier, for the first time this year, it fell under the moving averages. Another MA cross will just blow LINK [LINK/BTC] needs. Such a push can push LINK by 60-74 thousand sat.
Thus, as long as the market continues to create lower lows on the chart to the point where nothing but a trend change is inevitable, it is recommended to refrain from investing. When this happens, do not hesitate to intervene. Beware, however, and DYOR.