Could Cardano (ADA) head to another apocalypse?

Could Cardano (ADA) head to another apocalypse?

Positive expectations from Cardano [ADA] investors regarding the upcoming Vasil upgrade could be shortened. No, not because the update may have some hiccups but because it focuses on price performance.

Prominent trader and analyst, Peter Brand, has stated via Twitter that ADA is still headed for doom despite underperforming at the end of the year. According to Brandt, the recent ADA pattern is reflecting more bearish signals.

In his tweet, the analyst pointed to a descending triangle, which suggests that ADA is reaching another decline.


Are the forecasts likely to happen?

While Brandt notes that nothing is certain, the patterns on the chart seem to suggest acceptance. According to the 4-hour chart, ADA has formed ascending triangles twice since early September. The first occurred between September 3 and 4, while the other occurred from September 3. September 8 to 10.


Source: TradingView

However, both times ADA experienced some ups and downs before falling into long red candles. Given its current trend, it seems unlikely that ADA will succumb to speculation, especially as Bollinger Bands (BB) reveal a volatile stance. According to BB, the volatility of ADA is currently in the extreme zone.

However, there may be truth to Brandt's prediction. This is due to the Exponential Moving Average (EMA) indicators. At the time of writing, the 20 EMA (blue) is just below the 50 EMA (orange), showing that sellers have pushed buyers out of the market's control. This position has also been verified by the Directional Movement Index (DMI).

The DMI has agreed with the status of the EMA as the strength of the sellers (red) at 23.65 is much higher than that of the buyers (green) at 12.90. Additionally, the Average Directional Index (ADX) shows that seller strength is so tough that buyers may find that an early reversal is unlikely.

Source: TradingView

With this current momentum, ADA will most likely continue to the downside rather than reverse to the upside. 

String figures

Since the Vasil update is a week away, it seems necessary to check the on-chain ADA indicators. According to Sant Sample t, the thirty-day market to real value (MVRV) ratio is -0.0135%. This value means that the actual value of the ADA is worth more than the market capitalization.

Not much happens or neither does the ADA chain, as activity grows along a downward path. At the time of publication, development activity was 27 despite hitting 40 on September 5.

Source: Emotions




Sep 16, 2022

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