Altcoins and their price movements are believed to follow Bitcoin forever and ever. But somehow some altcoins seem to be going their own way despite the weak market signals and the bearish bitcoin movement. However, 2 large altcoins have been quietly preparing for a major trend change in the charts. So is this the perfect time to buy them? These metrics can help you figure this out.
Are these altcoins about to flip over?
It’s not surprising that Cardano and Chainlink are the first to tip over. Cardano’s upcoming Goguen release of smart contracts has kept everyone on their feet for a long time. Chainlink, on the other hand, has succeeded in adding over 1.4 new partners every day since the beginning of 2021. This shows that people have been bullish for a while, only the market needs to turn around.
To prove the above prediction, take a look at the Network Value to Transaction Ratio (NVT). You can see the extreme deviation on both the Cardano and Chainlink charts. Such a deviation is usually viewed as a signal of a trend reversal in favor of bullish momentum.
In addition, it has been observed that on-chain development has been consistently strong for both networks. They have risen in the past few weeks and make a strong case for any kind of bullish reversal in the future. In addition, the coins have seen a slight increase in volume recently despite minimal market movements. If the prices of these altcoins go up, those numbers will definitely skyrocket.
When should you buy them?
According to popular analyst Michael Van De Poppe, ADA is currently in a phase of consolidation. For now, $ 1-1.14 remains the critical support setting a critical breaker at $ 1.31. Historically, $ 1.48 was essential to understanding the trend as price action tested this range and turned it into strong resistance on the charts.
Chainlink has also made lower highs and declined previous support levels. 49,000 sats are necessary to regain your lost bullish momentum and benefit from the above metrics.
Previously this year it was below the moving averages for the first time. Another MA intersection would only be the Kick LINK [LINK/BTC] needs. Such a push could push LINK to 60k-74k sats.
So as long as the market continues to make lower lows on the chart until there is only one trend reversal, it is wise to refrain from investing. If that happens, take a moment to jump in. But watch out, and DYOR.