How would current market sentiment affect Ark's movement?Hello, fellow traders!
This is my analysis on Ark (ARKUSD).
1️⃣ Analysis
Before looking into Ark’s chart, I want to address the current market sentiment first. Bitcoin, Ethereum, Dogecoin and many other cryptocurrencies hav experienced significant pullbacks, with BTC Dominance rising from 55% to nearly 57% yesterday – reflecting fear throughout the market. (My chart timezone is UTC-5.) Whether this is temporary remains uncertain. With that context, let’s now look at the Ark’s chart.
This is a daily chart for Ark.
Ark’s price remains inside the channel, which is a positive sign since trading within a trend is safer than trading outside of it.
The current price is slightly below the Price Action Zone (PAZ). Yesterday’s candle closed inside the zone, and this is important as it suggests a possible rebound. If the candle has broken though the zone entirely (as it did on June 18th), the likelihood of a rebound would be lower.
The current candle still has the potential to turn green (indicating a bullish reversal), as Bitcoin has also turned green, forming a doji star as I write. Additionally, BTC Dominance has turned red after forming a long upper wick, hinting at the possibility of a continued rally. Check the charts below.
2️⃣ Expectations
Ark, like any other altcoin, will be heavily impacted by the overall market sentiment.
With 15 hours remaining until the current daily candle closes (as of now), there is still a chance that the current downtrend could halt or even reverse. If the current candle closes within the PAZ or better yet, turns green like Bitcoin has, it could signal the potential for further recovery after the correction.
But even then, we want to keep our eyes on BTC Dominance to keep track of market sentiment. We always want to respect and trade along with the overall trend.
Dogecoin is also worth watching since it’s leading the current altcoin rally. Earlier today, its price dipped below the uptrend channel but has since rebounded back within it. If it remains so until the candle closes, this could indicate that the rally will continue longer. (Or at least it’s refusing to stop now.)
Now, the best scenario would be price rebounding at the Area of Confluence (red box in the chart above, AoC in short) where the uptrend channel’s support line meets the 0.53963 level. However, the current market sentiment might not allow this to happen.
3️⃣ Key approach
Our first strategy is to enter long after confirming a rebound within the PAZ. This is highly plausible since many symptoms indicate that the rally could regain momentum after the correction. As mentioned earlier, Bitcoin’s candle has turned green, reentering the major demand zone. Dogecoin is currently forming a doji star and BTC Dominance candle has also turned red with significant volume – signaling a potential market recovery. If the market overcomes this correction, it is very likely that Ark will also follow the market sentiment and resume its uptrend.
That said, the safest entry would be to wait for a confirmed rebound at the AoC, but the current symptoms suggest that the market might not wait for Ark to reach the AoC before reversing its trend – making a more proactive approach worth considering.
4️⃣ Other approach
Now of course, because we still have a long time until the candle closes, the opposite scenario is entirely possible. BTC Dominance might turn green again - the correction might continue even with bigger momentum. In this case, Ark could close below the PAZ and potentially face further declines.
If this happens, I will post a separate idea regarding a new approach.
5️⃣ Considerations
Ark, as I mentioned in the previous post on it, has faced allegations of being subject to pump-and-dump schemes. Additionally, with a market cap of only 111 million USD and a ranking of 410, Ark is highly volatile - given these factors, investing in Ark for the long term could carry some risks.
React, don't predict! Stay disciplined and patient. Don't get greedy and be thankful.
God bless :)
Hebrews 11:6
