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Thursday, October 28, 2021

Cardano Might Drop By 60%-90%

The token currency Cardano is just about to attain the title of a smart contracts platform that is fully stocked- after it went through an upgrade. Charles Hoskinson, the founder of the project, recently confirmed that they have been processing sales of around $10 million worth of NFT tokens from their public ledger. Yet, the growth of ADA might not directly lead to a growth of its currency token. This is what has been implied by Peter Brandt, the famous analyst- also the CEO of Factor LLC- who believes that the growth of Ethereum might serve as a hindrance. 

A 60%-90% crash ahead for Cardano?

The analyst has shared a setup- quite bearish- in nature for Cardano which was published in a tweet on Friday. He went on to cite a classic technical pattern which has been referred to as Head and Shoulders- which would predict a downward movement for the cryptocurrency which is already going up on a scale of 600% on an annual timeframe. 

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Interestingly, Head and Shoulders form only when the price forms three different consecutive peaks on a single level of support- which is basically a condition that the middle peak would be higher than the adjoining peaks, which are usually of the same height. This price would eventually break down below the level of support and further fall by as much as the maximum height possible between the top of the middle peak and the support level available. Cardano, it seems, falls in this category perfectly. 

Brandt previously noted his record of predicting the tops of markets in order to provide further strength to his own depressive prediction of Cardano. For example, in one of his predictions back in 2018, he had correctly spotted a setup of descending triangles for Litecoin which followed the run-up of the altcoin.

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