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Cardano faces a new obstacle with the impending Vasil update. Analyst and futures trader Peter Brandt predicts poor performance for the coin based on current trends and projections.
He recently tweeted on the present state of affairs for Cardano.
“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. Although Cardano has been doing poorly as of late, the market still seems to be anticipating the worse for the currency based on the current downward angle.
Expectations and conjecture are not a guarantee, but they do help to outline the paths the asset could take in the future.
A Crash In The Offing For Cardano?
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 is a 90% discount, which is huge.
In spite of this, the value of the coin has remained relatively unchanged.
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.
This decline may also be associated with the underperformance of other crypto assets. According to Coingecko, the 10 leading cryptocurrencies have been on a downward trend, with Ethereum losing 10% of its value in just a week.
Broader Market Seen To Experience 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.
Latest headlines of the Vasil upgrade may not be sufficient to prevent a broad market decline. 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. In light of this, Cardano investors should prepare for another crypto market crash. If investor sentiment is resilient, a catastrophic scenario such as the one we just outlined can 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 billion on the daily chart | Source: TradingView.com
Featured image from Cryptocurrency News, chart from TradingView.com