The lead cryptocurrency, Bitcoin, has plunged below its important level of $22,000 and is now hovering around $20,000. This price action has pulled down most of the cryptocurrencies. Among them is Cardano, which has lost its fifth position by market cap and is now ranked in the eighth position.
At the time of writing, Cardano is trading at $0.47 after a pull-down of 0.47% over the last 24hrs. However, the currency still displays some amount of strength against Ethereum and others.
Just after a massive pull down recently from $1.20, Cardano’s price has been moving sideways for a while now. At the start of 2022 that Cardano lost its $1 area pulling down the currency towards 2020 levels. During that time, ADA had hit $1.20 before facing a massive pull-down.
A veteran trader Peter Brandt claims that ADA is about to create a similar move again. He is of the opinion that if Cardano forms another similar chart which is known as the descending triangle, ADA will face another price drop.
As per the chart, ADA Price is about to hit a bottom at $0.4 after forming a series of higher lows and this points to a downward trend. As per Peter Brandt, if Cardano continues with the same trend, the currency might fall below and re-test $0.35.
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Furthermore, the stats from Material Indicators indicate liquidity near $0.48 and this might assist ADA to hold on and not break from here. The indicator also shows that retail investors have increased the selling pressure as they are dumping their ADA holdings due to price increases.
The Cardano network is set to witness its most awaited upgrade for this year, Vasil Hardfork. This upgrade will make the network more scalable, and decentralized as per Cardano’s lead developer, Input Output Global (IOG).
However, it’s all a matter of time that will decide Cardano’s fate whether it will perform as per Peter Brandt’s prediction or it will spike after the upgrade.