Top futures trader Peter Brandt has made yet another bearish forecast on ADA, predicting a crash to $0.25.
Cardano has held up quite well above the support at $0.42 despite the recent bearish atmosphere in which the crypto markets have been stuck. The asset has witnessed some favorable sentiments following the successful launch of the Vasil hard fork. Notwithstanding, a few analysts still see a dip.
Peter Brandt, the veteran trader, recently revealed another forecast of ADA’s price movements through Twitter. Brandt highlighted that the ADA chart had been caught in a descending triangle since June. As the chart reveals, ADA saw a fall from the high of $0.64 on June 8, which took it below the support at $0.42 in July.
Despite a quick bounce back from the lows, ADA has remained stuck in a descending triangle ever since then. Brandt pointed this out, citing notable analysts such as Richard Schabacker.
“The ADA/USD chart is a classic descending triangle per Schabacker, Edwards and Magee and suggests a possible decline to sub .25,” Brandt remarked in a tweet.
The $ADAUSD chart is a classic descending triangle per Schabacker, Edwards and Magee and suggests a possible decline to sub .25. Do charts always work? — not really, but when they do it is a thing of beauty. Note — I do NOT short #8hitcoins pic.twitter.com/HP6mEbChJq
— Peter Brandt (@PeterLBrandt) October 5, 2022
According to him, the ADA’s inability to stage a breakout from the descending triangle indicates that the asset could see a dip below several support levels to $0.25. The last time ADA saw the $0.25 was in January last year.
Brandt, however, admitted that charts do not always work as analysts predict. Despite this, he added, “but when they do, it is a thing of beauty. Note — I do NOT short #8hitcoins.”
Recall that Brandt made a similar bearish analysis on ADA sometime last week, as The Crypto Basic previously reported. Brandt highlighted the same descending triangle that now extends to the new month. In response, Cardano’s founder Charles Hoskinson reminded Brandt that macroeconomic conditions and other factors could impact an asset’s price movements, which should also be considered.
Since Brandt forecasted a major decline for ADA when he pointed out the same descending pattern in mid-September, the asset has not seen such a significant dip. Nevertheless, it hasn’t also seen a major jump that could help it break out of the pattern.
ADA currently trades at $0.430 as press time, down 0.45% in the past 24 hours. Following a dip to $0.4247 on Wednesday, the asset rose to its highest point in October – $0.431. A dip below the support at $0.42 is hard to conceive, but if Brandt’s accurate analysis, the Cardano community might be witnessing that before long.