Cardano price is following the general market sentiment and is trending down in the last 24 hours. The cryptocurrency is on the verge of implementing a major upgrade through its “Vasil” Hard Fork Combinator (HFC) event, but the current price action bullishly signals bad news for investors.
At the time of writing, Cardano price is trading at $0.47 with a 3% gain over the past seven days. The cryptocurrency has lost its position in the top five by market capitalization, but has managed to maintain some wins over the past few days that have outperformed Ethereum and others.
This trader predicted bad news for Cardano price
On the lower time frame, Cardano price has been moving sideways over the past few months, breaking away from a major downtrend. In early 2022, the cryptocurrency finally broke below the $1 price point, causing further losses and sending Cardano to its 2020 levels.
At that point, Cardano price moved sideways and experienced a relief rally to $1.20, which was immediately followed by a sharp decline. Legendary trader Peter Brandt believes that ADA price may be forming a pattern pointing to a similar move.
Via his Twitter account, Brandt wrote the following, sharing the image below:
This is a fractal chart construction known as a descending triangle. If it continues in the fractal, there should be another significant drop in $ADA. “Should” not “should”.
As the image shows, Cardano price is forming a low near $0.4, with a series of higher lows indicating a downtrend. As predicted by Brandt, if ADA price continues to shrink from its current levels, the cryptocurrency could break down and retest the area around $0.35.
What could stop further losses for Cardano price
Data from the Content Indicator shows a plethora of ask liquidity at around $0.48. This could prevent ADA from breaking out about this area on a shorter time frame.
In addition, material indicators show increasing selling pressure from retail investors. Due to the bullish trend of Cardano price, they are launching their ADA in the market.
Fewer “paper hands” in the market, short-term investors, can lead to a longer-term bullish trend. On September 22, the Cardano network will undergo its most significant update in 2022 and will implement improvements in its scalability, decentralization and performance, according to its lead developer, Input Output Global (IOG).
As Brandt predicted, time will tell if the cryptocurrency completes the descending triangle at new lows, or if the upcoming HFC event will invalidate it.
Vasil Upgrade: Date Confirmed
After successful completion and extensive testing of all core components, as well as confirmed community preparedness, we are with @cardanostiftung today 22 september can announce #vasily upgrade to #cardano mainnet i$ada
1/9– Input Output (@InputOutputHK) 2 September 2022