According to Peter Brandt, the famous trader, Cardano (ADA) has developed a technical pattern that suggests a steep downside price movement.
Brandt tweets to his 676,000 followers that Cardano is trading within a descending triangle pattern, which he predicts will lead to a 42% drop in price.
“The ADA/USD chart is a classic descending triangle per Schabacker, Edwards and Magee and suggests a possible decline to sub $0.25. Do charts always work? – not really, but when they do, it is a thing of beauty,” tweeted Brandt.
The $ADAUSD chart is a classic descending triangle per Schabacker, Edwards and Magee and suggests a possible decline to sub .25. Do charts always work? — not really, but when they do it is a thing of beauty. Note — I do NOT short #8hitcoins pic.twitter.com/HP6mEbChJq
— Peter Brandt (@PeterLBrandt) October 5, 2022
The Performance of Cardano (ADA) Price
There are three popular technical analysts who helped coin “the descending triangle” pattern during the 1930s and 1940s: John Magee, Richard D. Edwards, and Richard W. Schabacker.
Cardano analyst Brandt released his analysis as blockchain analytics firm Santiment reported that traders are turning on ADA and two other crypto assets with record low sentiment.
“Cardano, EOS, and Tron are three once popular assets that have had trading crowds begin to turn on them. Price performance has been particularly rough for these three in 2022, and the capitulation may soon lead to price rebounds to reel them back in.”
At the time of writing, ADA is changing hands for $0.39 according to CoinMArketCAp.
BTC is currently one of the riskiest and most rewarding investments on the market, according to Brandt.
“Dating back to 2018, I have without apology stated that Bitcoin BTC has a 50% chance to go to $100,000/$250,000/whatever and 50% chance to go to zero. This I still believe, but it means that BTC represents a highly asymmetrical reward-to-risk trade,” said Brandt on his Twitter account.
Meanwhile, at the time of writing Bitcoin is valued at $19,135 according to CoinMarketCap.