Legendary trader Peter Brandt says that Cardano (ADA) is forming a technical pattern that suggests a big downside price movement for the Ethereum (ETH) rival.
Brandt tells his 676,000 Twitter followers that Cardano is trading within a descending triangle pattern and forecasts a potential 42% drop in the price of ADA.
“The ADA/USD chart is a classic descending triangle per Schabacker, Edwards and Magee and suggests a possible decline to sub $0.25. Do charts always work? – not really, but when they do, it is a thing of beauty.”
John Magee, Richard D. Edwards and Richard W. Schabacker are popular technical analysts who helped coin the “descending triangle” pattern in the 1930s and 1940s.
Brandt’s Cardano analysis comes as blockchain analytics firm Santiment reports that traders are turning on ADA along with two other crypto assets with record low sentiment.
“Cardano, EOS, and Tron are three once popular assets that have had trading crowds begin to turn on them. Price performance has been particularly rough for these three in 2022, and the capitulation may soon lead to price rebounds to reel them back in.”
At time of writing, ADA is valued at $0.422, mostly sideways over the last 24 hours.
Looking at Bitcoin, Brandt says BTC currently presents one of the greatest risk-to-reward trades on the market.
“Dating back to 2018, I have without apology stated that Bitcoin BTC has a 50% chance to go to $100,000/$250,000/whatever and 50% chance to go to zero. This I still believe, but it means that BTC represents a highly asymmetrical reward-to-risk trade”
At time of writing, Bitcoin is changing hands for $19,405, flat on the day.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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Source: https://dailyhodl.com/2022/10/10/cardano-ada-forming-huge-bearish-pattern-according-to-legendary-trader-peter-brandt-heres-his-target/