Cardano is on the brink of attaining the title of a fully-fledged smart contracts platform following an important upgrade in mid-July. The project’s founder Charles Hoskinson confirmed that they recently processed sales of over $10 Mln worth of NFTs [Non-Fungible Tokens] atop their public ledger.
Additionally, SundaeSwap, the primary DeFi DEX to utilize Cardano smart contracts is predicted to launch soon, and a lot of ADA investors interpret this as a possible bullish catalyst for the altcoin.
But the Ethereum rival’s growth as a project won’t cause higher adoption for its native cryptocurrency, ADA, inconsistent with an analysis shared by Peter Brandt, the chief executive of worldwide trading firm Factor LLC.
Is ADA Major Crash On The Way?
The veteran analyst shared a bearish setup for ADA within an official tweet published earlier today on Friday. He cited a classic technical pattern, referred to as Head and Shoulders, to predict a downside scenario for the Cardano token that’s already up over 600% on a year-to-date timeframe.
Moreover, Head and Shoulders form when the worth forms three consecutive peaks atop one price, with a condition that the central peak is over the other two, which are typical of an equivalent height. The worth eventually breaks below the support level – also called neckline – and falls by the maximum amount as the maximum height between the center peak’s top and therefore the support level.
ADA visibly fits the outline, as shown within the chart shared by Brandt.
The analyst envisioned the ADA/USD, rate of exchange to drop as far as $0.12 USD, down 90% from the pair’s present bid near $1.26 USD. A percentage-based calculation of the top and Shoulders pattern marked its profit target near $0.35 USD, down 60% from its neckline.
Brandt recalled his record of predicting market tops to feature strength to his depressive Cardano prediction. As an example, one of his analyses from 2018, involving Litecoin [LTC], corrected spotted a descending triangle setup following the altcoin’s run-up from $4 USD to $420 USD within the 2017’s Bull Run.
“I remember being scoffed at unmercifully once I identified this top in LTC/USD back in mid-2018,” Brandt tweeted. “Hey Cardano trolls, take aim.”