Cardano’s price has already dropped over 20% from its 2024 high, with the layer-1 coin now at $0.90, well below the year-to-date peak of $1.326. Legendary trader Peter Brandt, known for his work on technical analysis, has cautioned that the coin could face further declines in the near future.
Brandt pointed to the formation of a head and shoulders chart pattern on both the daily and four-hour charts. This pattern consists of two shoulders at $1.153, a head at $1.327, and a neckline at $0.914. Typically, a head and shoulders pattern signals a strong bearish breakdown, and if Brandt’s analysis holds true, Cardano’s price could crash to $0.629, which is around 32% below its current level and just below the 61.8% Fibonacci Retracement level.
Moreover, Cardano appears to have weak fundamentals. DeFi Llama data shows that its DeFi total value locked has decreased from over $700 million in November to $478 million currently, and in ADA terms, it dropped from 670 million ADA at its year-to-date high to 494 million. IntoTheBlock data reveals that the number of Cardano addresses has been falling since peaking in November when the coin was rallying, dropping from nearly 210,000 daily active addresses in November 2023 to 66,500. Additionally, Cardano’s futures open interest has been trending downward, indicating waning demand in the futures market, falling to $775 million on Thursday from a year-to-date high of over $1.1 billion.
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