Peter Brandt, a widely followed cryptocurrency analyst well-known for accurately calling bitcoin’s 84% decline in 2018, has revealed that according to a fractal chart construction, the price of Cardano ($ADA) could endure “one more significant decline.”
According to a tweet the veteran trader shared with his over 670,000 followers on the microblogging platform, Cardano’s chart has a fractal chart construction known as a descending triangle on it, suggesting a move lower.
A descending triangle is a bearish chart pattern that is created through a downward trendline that connects a series of lower highs coupled with a horizontal line connecting a series of lows – the exact pattern Brandt shared.
Descending triangles are used in technical analysis as a signal for traders to enter short positions during breakdowns, with the timing of the breakdown often occurring after the price of the asset moves below the lower line. Brandt noted, however, that the pattern could be invalidated by pointing out ADA “should” go down, but noting it does not necessarily mean it will.
Brandt is well-known in the cryptocurrency community for, in early 2018, accurately predicting Bitcoin’s over 80% decline. The analyst has in the past made other correct predictions as well, with a call in April 2019 for BTC to hit $50,000 “in the next two years” also proving to be correct.
As CryptoGlobe reported, institutional investor bets on Cardano-based investment products, offering them exposure to $ADA, have quadrupled from last week, at a time in which inflows to short Bitcoin products are rising significantly. Year-to-date, Cardano-based investment products have seen $14.1 million in inflows.
Cardano has recently also been deemed the top cryptocurrency project by “technology development,” by the team at Contora, a platform tracking social and technological data related to cryptocurrencies.
Featured image via Unsplash
Source: Read Full Article