The third-largest token by market cap is considered divisive in the crypto community because it’s more centralized and has figurehead leadership, which goes against some of the core principles of decentralized cryptocurrencies. Three weeks ago, technical analyst JC Parets took a significantly bullish stance on the controversial crypto token cardano.
It was all based on price action.
But Parets’ thesis wasn’t based on the crypto asset’s leadership. It wasn’t based on developer activity.
He predicted cardano would rally if the price went above $1.40. And it did more than rally, surging 92%. It’s currently trading around $2.70.
“When it comes to what’s my favorite technical indicator,” Parets said, “that’s an easy answer: price.”
Even after more than 12 years in the industry as a technical analyst, Parets still keeps it simple with a focus on price and pure technicals. Market technicians like him study charts to find patterns and trends, and the opportunities that these signal.
“It all started because nothing else seemed to work,” said Parets, who found little success with fundamental analysis, which relies more on financial and economic data.
“The markets are the exact same way, a market that’s trending higher, making higher highs and higher lows, has a much higher probability to continue to trend in that direction than just completely reversing on a dime,” Parets said.
Technical analysis, on the other hand, works because markets trend, Parets said.
With a significant emphasis on price, Parets and his team share views across a range of asset classes, including crypto, on his blog AllStarCharts.com.
“When it comes to cryptocurrencies, we’re just doing the same thing that we’ve always done, we analyze supply and demand and human behaviour, and it has been incredibly advantageous,” Parets said, “and certainly gives technical analysts an edge in the crypto space because we’re not doing anything different.”
Since cardano’s price is now more than double where Parets set the key price level for a breakout, Insider sat down with him on August 26 to understand how he’s looking at price action across a range of tokens: cardano, bitcoin, solana, dogecoin, helium, and bitfarms. Parets said he had positions in these cryptos except bitfarms and dogecoin.
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- Cryptocurrency price predictions for Cardano, Doge, Helium, Solana: JC Parets
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