Peter Brent, a digital currency market analyst, pointed to a classic downtrend in Cardano’s chart, saying that Cardano’s price could fall 90 percent. Meanwhile, some other experts have also suggested that Cardano’s price may fall.
to the Report Coin Telegraph, Cardano is now becoming one of the leading platforms for smart contracts. Support for smart contracts in the form of a major upgrade has been on the network since the middle of this month. Cardano co-founder Charles Haskinson recently confirmed that something like $ 10 million worth of token tokens had been sold on Cardano’s general office.
On the other hand, the SundaeSwap decentralized exchange, which is the first decentralized exchange in Cardano’s defy domain, will be launched soon. Many ADA investors cite this as a possible catalyst for Cardano’s uptrend.
According to the analysis provided by Peter Brent, the growth of the Cardano project may not lead to an increase in ADA acceptance.
Falling more than 60%?
Brent announced the formation of a bearish pattern on the Cardano chart yesterday by publishing a chart. Referring to the pattern of head and shoulders on the chart, he predicted that Cardano might be involved in a downtrend. Cardano’s price has risen more than ٪ 600 since the beginning of the year.
The head and shoulders pattern is formed on the chart when the price has formed 3 consecutive peaks above a support level. In the head and shoulder pattern, the middle peak should be larger than the two side peaks. In this pattern, two side peaks generally have the same length. After this pattern is recorded, the price usually falls below the support area called the “neck”. The size of this fall is usually the distance from the middle peak to the support level. As can be seen in Brent’s diagram, Cardano has set such a pattern.
In his analysis, Brent predicts that the ADA / USD exchange rate may fall to $ 0.12, which means a 90% drop from the current rate. The profit target for this fall is $ 0.35, which is 60% lower than the current level.
In part of his prediction, Brent also pointed to the accuracy of his past predictions. In one of his 2018 analyzes, he predicted the Litecoin price correction, referring to the descending triangle pattern. The price of Litecoin in 2017 had risen from $ 4 to $ 420. Brent wrote in a recent tweet:
When I set the peak price of LightQueen in 2018, I was met with a flood of ridicule. Hello Cardano fans who want to make fun of you! be ready!
Will 2018 be repeated?
The decline we saw after 2017 was mainly due to the failure of initial coin offerings. Statis Group research shows that 80% of Blockchain startups that attracted capital through bitcoin, ether and other digital currencies failed to offer an efficient product.
Most of these projects turned out to be scams, which increased the downward pressure on the market. In 2018, at the height of fear and uncertainty, the price of Bitcoin and Ethereum fell by more than 80%.
On the other hand, we have the upward trend of 2020, which was created by relying on macroeconomic challenges. For example, the Federal Reserve has resorted to quantitative easing policies to counter the effects of the Corona crisis; As a result, interest rates fell to near zero, and the purchase of $ 120 billion in assets prompted investors to look for better alternatives to high-risk markets.
In March 2020, the price of Bitcoin fell below $ 4,000 and about a year later reached a peak of $ 65,000. After this incident, many Altcoins followed in the footsteps of Bitcoin. Cardano was one of those digital currencies that managed to record a strong uptrend. Cardano is currently قیمت 7,000% below the March 2020 floor.
Crypto Watch data show that the 30-day correlation between Bitcoin and Cardano is close to 0.85.
Simon Kim, CEO of Hashed Investment Fund, said in an interview a few months ago that the digital currency market in 2020-2021 is very different from the market in 2017-2018. “We are fundamentally on the side of two completely different markets,” he said.
First of all, various Diffie projects are creating value based on a transparent business model. Second, we are witnessing unprecedented investments by institutional investors. Third, different companies are entering this market, both directly and indirectly.
He cited PayPal and Visa as examples of such companies. PayPal entered this field last year, and MasterCard has repeatedly expressed its interest in entering this market.
One of the leading market analysts, nicknamed Rekt Capital, says that in order for Cardano to continue its uptrend, it must close above $ 1.3. Coin Telegraph, an analyst at the Telegraph website, also hinted at a jump above $ 1.33, with the price likely to reach $ 1.9. In another part of his analysis, he said:
If the price falls below current levels or resistance and falls below 1.2, the uptrend scenario will be nullified and we may see an increase in downward pressure in the market. An increase in pressure may cause the $ 1 support to fall.