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"Counterintuitive Price Action" - Response to a great question by @jeffreycheah (torum.com):

"Any reason make the Cardano price remain sideway although their protocol update successfully?"

[Disclaimer - The below is simply my OG opinion that's based on years of participating in both legacy and crypto markets.

It is not financial advice and provided for educational purposes only.]

As in legacy markets, any publicized, significant upcoming event is quickly digested by deep-pocketed, savvy investors.

These OGs have a keen feel for the "pulse of the market" and can see a potential 10X bagger way before the less astute (polite term for the hordes of market gamblers without a clue).

Consequently, the bullish price is already "baked in" before the event happens and often drops sharply afterwards as those same investors take profits.

It actually bodes well for a project when its price goes sideways or suffers just a small dip on the day of the significant event.

Why?

Because it indicates that most of the project's current investors are, at the very least, swing-trade speculators, or better yet, new long-term investors.

But if a parabolic, "hockey stick" slope continues - in spite of early adopter profit-taking and no significant milestones happening in the near future, it's usually from naive FOMO speculators that, in reality, are unwittingly "late to the party".

Hope my explanation is useful for you.

May you and yours be well and love life today.

In lak'ech, JaiChai

This is YOUR TORUM INVITATION!

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Jaichai 3-5-2021. Simultaneous multi-site submissions posted. All rights reserved.