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Altcoins and their price movements are assumed to be eternally linked to Bitcoin. Nonetheless, despite weak market cues and bearish Bitcoin movement, some altcoins appear to be charting their own course. However, two major altcoins have quietly prepared themselves for a major trend change on the charts. So, is this the best time to buy them? These metrics can assist you in determining this.
Are these altcoins about to flip?
It is not surprising that Cardano and Chainlink are the first to be disrupted. Cardano’s upcoming Goguen release of smart contracts has kept everyone on their toes for quite some time. Chainlink, on the other hand, has added more than 1.4 new partners every day since the beginning of 2021. This demonstrates that people have been bullish for a long time; all that remains is for the market to turn around.
Consider the Network Value to Transaction (NVT) ratio to back up the aforementioned prediction. The extreme deviation can be seen on both the Cardano and Chainlink charts. A deviation of this magnitude is usually interpreted as a signal for a trend reversal in favour of bullish momentum.
Furthermore, it was discovered that both networks’ on-chain development has been consistently strong. They’ve been rising in recent weeks, and they make a strong case for any kind of bullish reversal in the near future. Furthermore, despite minimal market movement, the coins’ volumes have recently increased slightly. If the prices of these altcoins rise, these figures will undoubtedly skyrocket.
When should you buy them?
According to popular analyst Michael Van De Poppe, presently, ADA is stuck in a consolidation phase. Right now, $1.14-$1.14 is the critical support, with a critical breaker at $1.31. Historically, $1.48 has been significant in understanding the trend because price action has tested this range, transforming it into strong resistance on the charts.
Chainlink has also made lower highs and rejected previous support levels. 49k sats are required to re-establish its bullish momentum and capitalise on the aforementioned metrics.
Previously, it fell below the Moving Averages for the first time this year. Another MA cross would be exactly what LINK [LINK/BTC] requires. Such a push could put LINK between 60k and 74k satellites.
As a result, it is prudent to refrain from investing as long as the market continues to create lower lows on the chart to the point where nothing but a trend change is imminent. Feel free to join in when that happens. But be cautious, and DYOR.