Veteran trader tarnishes Cardano’s ADA with a super bearish outlook

Key takeaways:

• Skilled investor tweets a bearish prediction for ADA.
• Updates on the Cardano mainnet might save the day.

YEREVAN (CoinChapter.com) – Cardano’s ADA is about to face a bearish turn, according to Peter Brandt, the chief executive of Factor LLC global trading firm. The seasoned investor tweeted his outlook on ADA on July 30, citing another prediction he made three years ago.

Back then Mr. Brandt offered his views on Litecoin and stated that he was looked down upon for his bearish prediction. Now he spotted a bearish pattern on the ADA chart as well.

Also read: ADA ascends 17.69% as Cardano confirms victory with Alonzo white hard fork

Daily chart presented by the investor

ADA registered a 29 percent gain since July 21, following the recovery wave initiated by Bitcoin. However, the CEO spotted a Head and Shoulders pattern that could send the price down to $0.45 from the current $1.27, hours ahead of the New York session opening bell.

In detail, the head and shoulders pattern features three consecutive peaks, with the middle one higher than the other two. The highest peak constitutes the head, the other two are called shoulders. The horizontal line, connecting the points of initiation of both shoulders and the head is called a neckline (indicated with a horizontal line in the chart below).

‘Head and shoulders is a reversal pattern. After the three peaks, the formation predicts a bearish phase.

However, the developments in the Cardano ecosystem give ADA bulls some hope for future gains.

Also read: Cardano traders yawn through bullish fundamentals as ADA awaits 25% rally

Good news for Cardano?

The blockchain company is in the middle of an update that promises to bring smart contracts to the network.

Cardano split the update into three stages: Byron, Shelley, and Goguen, which allows the creation of dApps on the mainnet. The latter is also split into three components. The roadmap of the Goguen update started with the Allegra in December 2021, then Mary, deployed in March. Next in line is Alonzo, which is separated into consecutive stages: Blue, White, and Purple.

Currently, the Alonzo Blue stage successfully gave place to the White phase, as announced on July 19.

The Alonzo White will run for two to four weeks, before transitioning to the Purple phase. Initially, Cardano planned to launch Alonzo on the mainnet in August, but the company claims that the delay will not affect the outcome.

Given the developments on the Cardano blockchain, ADA bulls might win and take the token up despite Mr. Brandt’s bearish prediction. However, if the forecast fulfills itself, ADA might face a 60 percent decline from the current value.

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