An analyst known for his accurate Bitcoin predictions draws attention to the trend patterns on the ADA chart. According to the analyst, $0.54 will be quite critical for the fate of the altcoin project…
Peter Brandt peeks at familiar trend patterns on Cardano chart
Cardano needs to close above $0.54 (June 16 high) to recapture the bullish momentum, according to veteran trader Peter Brandt. But a bearish technical analysis pattern on the daily timeframe poses a threat to push Cardano’s price further down first.
The cryptocurrency market continues to be under selling pressure. Meanwhile, market experts say the downtrend could continue as long as the stock markets follow new lows. Cardano founder Charles Hoskinson predicted the bear market months in advance while discussing ADA’s poor performance.
Hoskinson agreed that no announcement could change anything. Therefore, despite the protocol’s evolving technical functions and expanding community, the ADA price may continue to struggle to gain any positive momentum. ADA has performed poorly so far in 2022 after posting substantial gains last year. It is currently down 85.71% from the $3 peak.
Cardano needs to close above $0.54 to change trend
Veteran analyst Peter Brandt offers insight into the key level Cardano must overcome to maintain a positive outlook. According to the analyst, this level is around $0.54, the high of June 16. Brandt points to the continuation of a head-and-shoulders pattern on the daily chart, which is a potentially bearish signal.
While Cardano’s price wasn’t impressive this year, Santiment shared that addresses with 10,000 to 100,000 ADA have accumulated and have purchased 79.1 million ADA in the last 30 days. Whales holding 100,000 to 10 million ADA have likewise stopped selling. Technical analysis shows that the price of ADA will rise for a while, accompanied by interest from whales.
What do the indicators say about the altcoin?
For Cardano, over the past month, the 50% Fibonacci level has created a tough buy barrier. As a result, Cardano’s decline from $0.48 helped the sellers to impose a wedge break. Also, EMAs are still bearish. Thus, it saw a break below the $0.48 wedge. A consistent downtrend will help sellers retest the $0.43-0.44 range.
On the other hand, the RSI took a bearish appearance hovering below the 41 resistance. A break above this support helps buyers ease selling pressure. As a result, traders need to keep a close eye on Bitcoin price before taking a position on ADA. As Kriptokoin.com reported, Cardano is making sudden jumps due to the upcoming Vasil hard fork.
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