Cardano managed to stay above the $0.42 support despite the recent bearish environment where the crypto markets got stuck. The asset has witnessed some positive emotions following the successful launch of the Vasil hard fork. However, a few analysts are still waiting for the altcoin to drop.
Veteran trader Peter Brandt recently tweeted about ADA’s price action. guessing found. Brandt emphasized that the altcoin chart has remained in a descending triangle since June. As the chart shows, ADA saw a drop from the $0.64 level on June 8, which resulted in a drop below the $0.42 support in July.
Despite a quick rebound from the lows, ADA has since been stuck in a descending triangle. Brandt drew attention to this by citing prominent analysts such as Richard Schbacker. Brandt said in a tweet:
“The ADA/USD chart shows a classic descending triangle and a possible drop below 0.25 according to Schbacker, Edwards and Magee.”
According to him, the failure of ADA to break out of the descending triangle indicates that the asset may slide below a few support levels to $0.25. ADA last saw $0.25 in January last year. But Brandt added that charts don’t always work as analysts predicted:
“Do graphics always work? — not much, but good work when they do. Note — I do not open a short position.”
Brandt shared a similar bearish analysis for the altcoin last week. Brandt highlighted the same descending triangle that extends to the new moon. In contrast, Cardano founder Charles Hoskinson reminded Brandt that macroeconomic conditions and other factors can influence an asset’s price movements and this should also be taken into account.
After Brandt pointed to the same descending pattern in mid-September, his predicted decline for ADA did not materialize. However, the altcoin has not seen a big bounce that could help it break out of the formation.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.