Cardano is facing a new challenge with the imminent Vasil update. Based on projections and current trends, Peter Brandt, analyst and futures trader for Cardano predicts a poor performance.
Recent tweets by him addressed the Cardano situation.
“This is a fractal chart pattern called a descending triangle. If the construction continues in the fractal, $ADA should have one more significant retreat.”
The keywords are “should,” and not “must,” Brandt tweeted.
The analyst pointed out the coin’s current trend. Even though Cardano’s performance has suffered, it seems that the market is still anticipating worse outcomes for the currency due to its current downward angle.
While expectations and conjecture may not be a sure thing, they help us to envision the path the asset might take.
Cardano: Is There a Crash in The Future?
And as a result of the crypto market’s recent performance, this research may cause investors to worry about a possible impending crash.
The coin’s value has fallen from its recent high of $0.5043 at the market’s closing to its current level of $0.4574. This discount is 90%, which is quite significant.
However, the price of the coin has not changed much.
Cardano’s current price has been attempting to extricate from the 78.60 Fib level, which is now located at $0.5025. However, the bulls have not gained sufficient aggressiveness for this, making the price extremely volatile.
This inability to barrel upwards, together with the analysis, may indicate that the larger decline has already begun.
It is possible that this decrease could also be due to the low performance of other cryptocurrency assets. Coingecko says that 10 of the most popular cryptocurrencies have fallen in recent weeks, with Ethereum experiencing a 10% decline.
Wider Market To Feel More Pain
This linkage with leading cryptocurrencies can further push Cardano’s price towards the bottom. As a result of Bitcoin’s decline following the release of the latest CPI report and expectations of a 1% increase in interest rates, the broader market will continue to suffer greatly.
Recent news about Vasil’s upgrade might not be enough to stem a widespread market drop. If Cardano’s future is to be bright, the crypto market as a whole must perform better.
This is extremely unlikely, though, considering Bitcoin closely follows the S&P 500 Index. Cardano investors need to be prepared for another cryptocurrency market crash. Investor sentiment can remain resilient and a catastrophe such as the one just described could still be reversed.
As Cardano’s upgrade nears, additional information should become available over the next few days.
ADA Total Market Cap at $15.5 Billon on Daily Chart | Source: TradingView.com Featured image taken from Cryptocurrency News. Chart by TradingView.com