In what seems to be one of the most bullish days throughout the life cycle of the third most traded cryptocurrency in the world, Cardano has experienced a little bit of a dip today, despite the news about the introduction of the very hard fork to the Cardinal Net.
, The ADA pioneered cryptocurrency platform has shown a new swing low of about twenty five percent to the downside from its recent all time. High. Now I know a lot of people have been wondering what is going on with Cardano.
. I thought it was bullish wise.. Why is Cardinal's price falling and why now Well in this video, I'm, going to be breaking down the reasons for the recent downswing and why this is necessary for the sustainability of Cardano in the long term.
. I also know a lot has been going down on the crypto space with Bitcoin dropping to yet another low of forty, eight thousand US dollars. Ethereum experiencing the battle of the bulls and the Bears and now this.
Well stay tuned to Crypto Lion for more news. Updates.. Thank you for coming with us on this journey into the next phase of cardinals. Development. - I look forward to seeing you here more often., Hi there.
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Where I entertain and enlighten you on all types of cryptocurrency related updates. Now I know you might want to ask what is that Mary Hart fork? Well, let's, get right into the definition of what a hard fork actually is.
. So, in simple terms, a hard fork is the introduction of any significant alteration or modification to the core code of a block chain protocol that renders all pre-existing transaction records incompatible with the hard fought version of the block.
Chain. Traditionally, hard forks represent a radical change on the block chain, which entails a halt in the operations of the platforms previously defined protocol and the initiation of a new chain to begin.
The insertion of a hard fork often requires users to swap tokens and other similar intensive processes., Oftentimes, trepidations and expectations of upheaval are expected of any cryptocurrency that introduces a hard fought like Cardano.
. Ok, so Cardno has experienced a massive downtrend to the tune of twenty five percent.. Now I know this might come as quite a shock to most, but here's. The thing., The recent dip in the price of Cardno is actually a good thing.
. If you ask me now for those of you who might still be confused about this, you might be wondering how are we going to refer to a dip of this magnitude as a good thing, And I'm going to explain that in a moment.
, But in the meantime, I'd like to dive into what is happening on the cardinal charts and provide some technical analysis and predictions going forward.. Before we talk about this entire movement on the micro chart.
Let's. Take a quick pause to talk about something that's really important on the macros.. Once again, don't forget to hit that like button and turn on post notifications to watch more interesting videos from Crypto Lion.
. So if you take a quick look at the Bitcoin's chart all in the last bull market, you would get better insight into what a bull market looks like on a weekly chart.. In other words, the 20 weeks moving average and you can see Bitcoin consolidating to that area time and time again to introduce massive and volatile swing.
Lows for continuation to the upside and in-depth scrutiny of the weekly chart for Bitcoin reveals a separation from 20 week moving average in the most recent bull. Market. Bitcoin has not touched the 20 week moving average.
, And this is a good thing. Matter of fact. This is bullish. Now what this signifies is simply the demands and velocity of Bitcoin digging a bit further.. Let's briefly talk about the theorem chart., So in theory we went from zero to hero during its first bull market and at a similar position to where we are at this bull market.
. It experienced a two hundred and eighty percent overextended from the 20 week moving average., After which theory saw about a month, long dip, 60 to 70 percent towards the downside, before continuing to its then and first all time, high.
Now. Why am I talking about Bitcoin and Ethereum? First off Bitcoin serves as this huge data point.. We have to use it at all times regarding macro charts on all crypto currencies. Now Ethereum is very similar in that last bull market, given that was its very first bull cycle, yet even more similar to Cardno.
Now, as this is Cardoso's, very first bull cycle happening right now., So here we are on these six hour. Chart we've been talking about, is very simple.. Looking at the chart, we & # 39. Ve got to touch us to the lower trend line and a lot of space down below it.
. So what we've, been talking about is the potential for us to experience a third touch to the lower trend. Line., The interesting part of this you see is the overextension of Cardano from the 20 week moving average to around two hundred and seventy percent.
. Remember etherial, during its first crazy bull cycle, experienced the same thing over extending to about one hundred percent, while bitcoin overextended to around the same 90 to 100 percent.. So from all indications, the recent dip in Cardano is quite expected, given Cardno has been going absolutely off.
The charts, lately. And the dip of this sort is a common trend in the pioneer crypto currencies like Bitcoin and Ethereum.. You can think of the dip as a cooling off phase regarding institutional demands for crypto currencies.
, Considering what Cordona was building. I don't expect. We would see a similar dip of 60 to 70 percent all the way back down to the 20 week moving average from that swing high., Notably the Cardno dip happened as it did for Bitcoin and Ethereum, and every other cryptocurrency out on the market.
. However, understanding why the price of a.D.A recently had a downtrend is key to gaining firsthand insight as to how to circumvent and make the best choices from this downward swing.. And yes, the price of Cardno is down by twenty five percent over the last twenty four hours and since its all time, high just a while ago.
. I know that when a lot of you tubers describe the reasons for being bullish about any particular coin or cryptocurrency, they pick the analogy that best suits their preferred reality. Here on crypto line.
We always urge you to give every piece of news update or technical analysis. You find on here a second thought before investing in any token or digital currency.. As much as this video presentation is concerned, this is not expert advice but technical analysis conducted to aid.
. You better understand what's happening in the crypto space.. It is important to understand that this is cryptocurrency training and investing.. So don't hesitate to conduct your own research on the topic before you choose to buy into any cryptocurrency challenge reserve to tracking technical analysis across the entire cryptocurrency ecosystem and documenting personal opinions, and not offering expert advice on trading.
. So, from the six hour chart we just analyzed. All I can say is the new recent consolidation is an upward action.. If you look at what Cardno has been doing starting from the beginning of February, you know higher highs and lower lows looking closely.
You would see that the movement has been a little bumpy. And since five cents and 10 cents we get the sideways consolidation and then the breakout.. If we look at the accumulation that has happened within the six hour chart and considering continuous consolidation, we could see that if it were to happen for Cardano, then the 50 day moving average continuously gets pulled off.
Closing in on the current price of Cardano.. I think the next 12 to 24 hours are going to be really crucial for Cardano in terms of its next move. And again. If we go back and take a look at the chart, give it some more time, maybe a few days, and even if that means extreme volatility to the downside or a week below that trend line.
It's that ninety five percent area that could potentially be in play. And once that happens, rest assured that the price of Cordona was going to skyrocket even more to greater numbers.. We're talking about the next couple of months.
Maybe weeks. So get your stocks up and get ready to buy the dip and increase your cryptocurrency portfolio and subsequent returns. As you wait to hit the moon in no time. Don't forget to drop your questions or suggestions in the comments section below and we'll do our best to respond to each one.
. Lastly, don't forget to hit that like button and turn on post notifications to watch more interesting videos from Capitoline., Good luck and happy investing