Cardano (ADA) Analysis
In a series of tweets, crypto analyst Trend Rider (@TrendRidersTR) analyzed the short-term trends of Cardano (ADA) and hinted that it may be poised for another bull run similar to 2020. Trend Rider noted that ADA’s 2-week chart is showing strong uptrend signals accompanied by green waves, mirroring the onset of the previous bull market two years ago. “Could history be repeating itself?” The analyst questioned.
In further analysis, Trend Rider focuses on weekly timeframes to guide trading decisions and take profits. While the macro chart looks optimistic, the trader highlighted that ADA is currently trading between the parabolic red line and rider band on the weekly chart after confirming a “Take Profits” signal three weeks ago. Trend strength has weakened over the past two weeks according to the indicators. However, the overall trend direction remains bullish.
Trend Rider concluded that ADA appears to be consolidating before its next move. The most probable scenario, in their view, is for the price to touch the rider band and bounce. It may take 2-10 weeks for this to play out. The trader advised either waiting or holding current positions and looking for opportunities to add on a dip into their defined buy zone.
Polygon (MATIC) Analysis
MATIC Poised for Near Term Gains: World of Charts (@WorldOfCharts1), another analyst, pointed to bullish signs on the shorter timeframes for Polygon (MATIC). A downward trendline had been defined on the chart showing MATIC making lower highs. Significantly, a breakout above this trendline was confirmed, which can indicate a potential trend reversal.
Breakouts from downtrends are important patterns watched by traders as they suggest a change in direction may be underway. World of Charts even put a price target of 11.87% above the breakout point. Should this target be reached, it would provide confirmation of the bullish signal for risk-tolerant traders entering on the breakout. However, such projections do carry risk and are not guaranteed outcomes.
Overall market conditions and external variables could nonetheless impact whether these crypto assets live up to the bullish views outlined. That said, the analyses provide frameworks for traders to evaluate potential swing trade setups in ADA and MATIC over the coming weeks. Patience and only entering positions in lines with risk management will be key should these scenarios play out.
