The widely followed veteran trader, Peter Brandt, is warning that Cardano (ADA) is exhibiting a bearish continuation pattern.
Brandt tells his 675,600 Twitter followers that Cardano appears to be printing a descending triangle pattern, suggesting the possibility of a fresh leg down for ADA.
The legendary trader, however, says his prediction doesn’t have to come to pass.
“This is a fractal chart construction known as a descending triangle. If it continues in the fractal, ADA should have one more significant decline. ‘Should,’ not ‘must.’”
Brandt’s prediction is accompanied by a side-by-side comparison chart of Cardano and Bitcoin (BTC). On the chart, both crypto assets are in a descending triangle pattern though in different periods – Cardano in the current time and Bitcoin in 2018.
After being in a descending triangle pattern for about 10 months, Bitcoin went on to fall from around $6,000 to $3,200 – a 47% drop.
According to the chart posted by Brandt, Cardano’s descending triangle pattern started about four months ago.
Cardano is trading at $0.464 at time of writing while Bitcoin is exchanging hands at $19,926.
The veteran trader’s analysis of ADA is coming less than a week before Cardano’s much anticipated Vasil hard fork. The Vasil hard fork, which is expected to lower Cardano’s transaction fees and enhance scalability, is slated for September 22nd.
This article was originally published on dailyhodl.com