Cardano has been trending to the downside following market sentiment over the past 24hrs. The cryptocurrency is on the verge of implementing a major upgrade via its “Vasil” Hard Fork Combinator (HFC) event, but the current price trend hints at bad news for bullish investors.
Cardano trades at $0.47 as of this writing with a 3.3% profit in the seven previous days. Although the cryptocurrency has lost its place in the Top Five by Market Capitalization, it managed to retain some wins over Ethereum and other currencies for the last few days.
Cardano’s Price Forecast: This trader forecasted bad news
Cardano’s price moved sideways in low-time frames over the last few months after a significant downtrend. The cryptocurrency fell below $1 in early 2022. This triggered further losses that sent Cardano to its 2020 level.
Cardano’s price was moving sideways at that point. It experienced a brief relief rally up to $1.20. This was followed immediately by a sharper drop. Legendary trader Peter Brandt believes ADA’s price might be forming a pattern hinting at a similar move.
Brandt, via his Twitter account shared this while also sharing the photo below
This is known as the descending triangle in fractal charts. The $ADA would see a significant decrease if it goes on in this fractal. “Should,” not “must”.
Cardano’s price has reached a low of $0.4 and a string of high lows suggests a decline. If ADA’s price continues to compress into its current levels, the cryptocurrency might break below and re-test the area around $0.35, according to Brandt’s prediction.
What Could Prevent Further Losses For The Cardano Price
Material Indicators data shows that there is a stack at $0.48 of liquidity. This might prevent ADA breaking down in this region, at lower times.
Material Indicators also show an increase in retail investor selling pressure. Their ADA has been being sold on the open market since Cardano’s price trend to the upside.
Fewer “paper hands”, short-term investors, on the market might lead to a long-term bullish trend. Input Output Global (IOG), the network’s lead developer, will update Cardano on September 22nd. It will make improvements to its scaleability, performance and decentralization.
The time will show if cryptocurrency can complete the downward triangle to new lows, just as Brandt anticipated, or whether the HFC event that is coming up will nullify it.
VASIL UPGRADE – DATE CONFIRMED💪
Following the successful completion & extensive testing of all core components, plus confirmed community readiness, we along with @cardanostiftungToday, 22 September is announced for the #VasilUpgrade on the #Cardano mainnet. 🧵$ADA
— Input Output (@InputOutputHK) September 2, 2022