Cardano faces a new obstacle with the upcoming Vasil update. Analyst and futures trader Peter Brandt predicts the coin will perform poorly based on current trends and forecasts.
He recently tweeted about the current state of affairs for Cardano.
“This is a fractal chart pattern called a descending triangle. If construction continues in the fractal, $ADA should have another significant pullback.”
The keywords are “should” and not “must,” Brandt tweeted.
The analyst pointed out the current trend of the coin. Although Cardano has performed poorly lately, the market still appears to be expecting the worst for the currency based on the current downside angle.
Expectations and guesses aren’t guarantees, but they help outline the paths the asset might take in the future.
Is Cardano about to crash?
And as a result of the recent development of the crypto market, this research could cause investors to worry about a possible imminent crash.
The coin’s value has fallen from its recent high of $0.5043 at the close to its current level of $0.4574. This is a 90% discount, which is huge.
Despite this, the value of the coin has remained relatively unchanged.
Cardano current price has attempted to break away from the 78.60 Fib level, which is now at $0.5025. However, the bulls have not gained enough aggressiveness to do so, making the price extremely volatile.
This inability to move higher, coupled with analysis, may indicate that the larger decline has already begun.
This decline may also be related to the underperformance of other crypto assets. According to Coingecko, the top 10 cryptocurrencies are in a downtrend, with Ethereum losing 10% of its value in just one week.
Broader market seems to be in more pain
This association with leading cryptocurrencies can push Cardano’s price further down. As a result of Bitcoin’s decline following the release of the latest CPI report and expectations of a 1% rate hike, the broader market will continue to suffer badly.
Recent Vasil upgrade headlines may not be enough to prevent a broad market decline. If Cardano’s future is to be bright, the crypto market as a whole needs to do better.
However, this is extremely unlikely given that Bitcoin closely follows the S&P 500 Index. Given this, Cardano investors should brace themselves for another crypto market crash. If investor sentiment is resilient, a catastrophic scenario like the one we just outlined can still be reversed.
As Cardano’s upgrade approaches, additional information should become available in the next few days.
ADA Total Market Cap at $15.5B on the Daily Chart | Source: TradingView.com Featured image from Cryptocurrency News, chart from TradingView.com