{"id":312269,"date":"2021-07-30T18:33:23","date_gmt":"2021-07-30T15:33:23","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/cardano-risks-60-90-drop-warns-trader-with-ada-painting-a-classic-bearish-pattern\/"},"modified":"2021-07-30T18:33:23","modified_gmt":"2021-07-30T15:33:23","slug":"cardano-risks-60-90-drop-warns-trader-with-ada-painting-a-classic-bearish-pattern","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/cardano-risks-60-90-drop-warns-trader-with-ada-painting-a-classic-bearish-pattern\/","title":{"rendered":"# Cardano risks 60%-90% drop, warns trader with ADA painting a classic bearish pattern"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2840eb01656\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2840eb01656\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/cardano-risks-60-90-drop-warns-trader-with-ada-painting-a-classic-bearish-pattern\/#A_60-90_crash_ahead\" >A 60%-90% crash ahead?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/cardano-risks-60-90-drop-warns-trader-with-ada-painting-a-classic-bearish-pattern\/#But_can_2018_repeat\" >But can 2018 repeat?<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Cardano risks 60%-90% drop, warns trader with ADA painting a classic bearish pattern <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Cardano is close to attaining the title of a fully-fledged smart contracts platform following a critical upgrade in mid-July. The project&#8217;s founder Charles Hoskinson confirmed that they recently processed the sales of more than $10 million worth of non-fungible tokens atop their public ledger. <\/p>\n<p>Moreover,\u00a0an NFT and DeFi Marketplace called the Spores Network, which raised\u00a0$2.3 million in a\u00a0fundraiser, said it would deploy its services atop the Cardano chain for lower transaction costs, lower carbon footprints, and higher transaction throughput.<\/p>\n<p>But the Ethereum rival&#8217;s growth as a project might not lead to higher adoption for its native cryptocurrency, ADA, at least according to an analysis shared by Peter Brandt, the chief executive\u00a0of global trading firm\u00a0Factor LLC.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"A_60-90_crash_ahead\"><\/span>A 60%-90% crash ahead?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The veteran analyst shared a bearish setup for ADA in a tweet published Friday. He <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/PeterLBrandt\/status\/1421079965508984844\">cited<\/a> a classic technical pattern, known as Head and Shoulders, to predict a downside scenario for the Cardano token that is already up more than 600% on a year-to-date timeframe.<\/p>\n<p>In detail, Head and Shoulders forms when the price forms three consecutive peaks atop a single support level, with a condition that the middle peak is higher than other two, which are typically of the same height. The price eventually breaks below the support levels\u2014also called neckline\u2014and falls by as much as the maximum height between the middle peak&#8217;s top and the support level.<\/p>\n<p>ADA visibly fits the de<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">script<\/a>ion, as shown in the chart shared by Brandt.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-07\/740f3856-4beb-4f8d-b0de-85482fcc7293.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Cardano&#8217;s head and shoulder setup. Source: TradingView.com, Peter Brandt<\/em><\/figcaption><\/figure>\n<p>The analyst envisioned the ADA\/USD exchange rate to drop as far as $0.12, down 90% from the pair&#8217;s current bid near $1.26. A percentage-based calculation of the Head and Shoulders pattern marked its profit target near $0.35, down 60% from its neckline.<\/p>\n<p>Brandt recalled his record of predicting market tops to add strength to his depressive Cardano prediction. For instance, one of his analyses from 2018, involving Litecoin, corrected spotted a descending triangle setup following the altcoin&#8217;s run-up from $4 to $420 during the 2017&#8217;s bull run.<\/p>\n<p>&#8220;I remember being scoffed at unmercifully when I identified this top in LTC\/USD\u00a0back in mid 2018,&#8221; Brandt tweeted. &#8220;Hey Cardano trolls, take aim.&#8221;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"But_can_2018_repeat\"><\/span>But can 2018 repeat?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The crash that followed the 2017 bull run originated primarily because of the so-called initial coin offering bust. A study conducted by Statis Group noted that more than 80% of blockchain startups that raised funds in Bitcoin, Ether, and other top coins of that time, failed to turn up a working product.<\/p>\n<p>Meanwhile, a majority of them turned out to be outright scams that sold the raised crypto capital, thus creating a downward pressure on the entire market. Litecoin, Bitcoin, and Ether crashed by more than 80% in 2018 as the ICO FUD pushed investments out.<\/p>\n<p>In contrast, the 2020 bull run came in the wake of macroeconomic blunders. The Federal Reserve&#8217;s efforts to contain the economic aftermath of the Covid-19 crisis saw it launching an unprecedented quantitative easing program. As a result, near-zero interest rates and $120 billion worth of asset purchases sent investors looking for better alternatives in riskier markets every month.<\/p>\n<p>As a result, Bitcoin boomed from below $4,000 in March 2020 to above $65,000 in April 2021. Meanwhile, altcoins, which tend to tail Bitcoin trends, surged likewise. Cardano&#8217;s ADA was one among them; it is now trading more than 7,000% higher from its mid-March bottom.<\/p>\n<p>The 30-day correlation between Bitcoin and ADA stands near 0.85 above zero, per data <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cryptowat.ch\/correlations\">provided by Crypto Watch<\/a>.<\/p>\n<p><strong><em>Related:\u00a0Waiting for Alonzo: Cardano smart contracts creep toward full launch<\/em><\/strong><\/p>\n<p>Simon Kim, CEO of crypto venture fund Hashed, told Cointelegraph in March that the 2020-2021 crypto market is entirely different from the one from 2017-2018, noting that the market now is running on a completely different fundamental. He said:<\/p>\n<blockquote><p>&#8220;Firstly, various DeFi projects are creating value based on a clear business model. Secondly, we\u2019re seeing record active investment by institutional investors, and finally, various on-ramps and off-ramps, including not only PayPal and Visa but also large banks, are now emerging.\u201d<\/p><\/blockquote>\n<p>Rekt Capital, a pseudonymous market analyst, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/rektcapital\/status\/1421028046266585088\">noted<\/a> that ADA needs to close above its weekly close of $1.30 to confirm its long-term bull trend. Cointelegraph&#8217;s Rakesh Upadhyay also pointed out\u00a0that a break above $1.33 would increase the Cardano token&#8217;s potential to extend its upside target towards $1.90.<\/p>\n<p>&#8220;Conversely, if the price turns down from the current level or the overhead resistance and slides below $1.20, it will indicate that bears continue to sell at every higher level. That may result in a retest of the critical support at $1,&#8221; Upadhyay warned, nonetheless.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/cardano-risks-60-90-drop-warns-trader-with-ada-painting-a-classic-bearish-pattern\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Cardano risks 60%-90% drop, warns trader with ADA painting a classic bearish pattern &#8221; Cardano is close to attaining the title of a fully-fledged smart contracts platform following a critical upgrade in mid-July. The project&#8217;s founder Charles Hoskinson confirmed that they recently processed the sales of more than $10 million worth of non-fungible tokens&#8230;<\/p>\n","protected":false},"author":1,"featured_media":312270,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDcvNWZkMzk4ODEtNmE4Ny00ZGU3LWE5ODktY2NhYjEyMGUxOGM3LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,88119,79806,75378,74939,75150,78261,73785],"class_list":["post-312269","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-altcoin-watch","tag-analysis","tag-cardano","tag-market-analysis","tag-market-update","tag-tech-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/312269","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=312269"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/312269\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/312270"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=312269"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=312269"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=312269"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}