Cardano Price Plunges Over 20%, Legendary Trader Warns of Further Downside

Cardano’s price has plummeted by over 20% from its highest point this year, and renowned trader Peter Brandt believes the cryptocurrency has more room to decline. Cardano, a popular layer-1 coin, has retreated to $0.90, significantly lower than its year-to-date high of $1.326.

Head and Shoulders Chart Pattern Suggests Bearish Breakdown

Peter Brandt, a legendary trader and technical analysis expert, pointed to Cardano’s head and shoulders chart pattern on the daily and four-hour chart. The H&S pattern consists of two shoulders at $1.153 and a head at $1.327, with a neckline at $0.914.

Looks like a potential CAR crash

This pattern often precedes a strong bearish breakdown, with the target typically being the same distance between the head and the neckline. If Brandt’s prediction holds true, Cardano’s price may plummet to $0.629, which is approximately 32% below its current level.

Weak Fundamentals Contribute to Cardano’s Decline

Third-party data indicates that Cardano’s fundamentals are weak, which may explain why it lags behind other layer-1 networks like Solana and Ethereum. According to DeFi Llama, Cardano’s DeFi total value locked has decreased from over $700 million in November to $478 million today. This decline has also been observed in ADA terms, with the TVL falling from 670 million ADA to 494 million.

Additionally, data from IntoTheBlock shows that the number of Cardano addresses has continued to decline after peaking in November. The daily active addresses have dropped from almost 210,000 to 66,500.

Futures Open Interest in Decline

Cardano’s futures open interest has also been trending downward, signaling a decrease in demand in the futures market. The interest fell to $775 million on Thursday, down from the year-to-date high of over $1.1 billion. This metric is crucial in assessing the volume of unfilled put and call options orders in the futures market, often rising when there is substantial demand for a coin.

For the latest updates on the cryptocurrency market, visit Global Crypto News for more insights and analysis.

Post Views: 0