- Peter Brandt (CEO of Factor LLC) Prediction – ADA to Test $0.12
- Fed was thinking of reducing its bond purchases to $120 billion per month, Christopher Waller says.
- Forex trading participants may look for a buy trade above the $1.2580 level to the target of $1.3550 and $1.3850.
The ADA/USD closed at $1.308646 after placing a high of $1.348538 and a low of $1.296125. The ADA/USD remained lower for 3rd consecutive session and gave about the steady movement for the day as there was a lack of any fundamental or news. Cardano price prediction is bullish on Tuesday, as the double bottom pattern supports ADA at the $1.2580 level.
Peter Brandt (CEO of Factor LLC) Prediction – ADA to Test $0.12
Recently Peter Brandt, the CEO of trading firm Factor LLC posted a technical analysis of Cardano. He pointed towards a possible head and shoulders pattern forming in the chart. He referred to a similar pattern in Litecoin in 2018, which proved correct later on.
For now, he predicted that ADA has the potential to go downside towards as low as $0.12. Well, that’s equal to a 90% decline in its price from the time of analysis.
Cardano’s CEO Jumps to Reply Peter Brandt’s Analysis
In response to such prediction, the CEO of Cardano and Input-Output Global, Charles Hoskinson’s rejected the technical analysis of Peter Brandt. He said that markets were so much more complicated.
Charles even called his analysis the arbitrary interpretation of the chart. He said the analysis was based on technical indicators, did not consider the fundamental analysis, and came in with tons of disclaimers, terms, and conditions. He further added that technical analysis worked better before computers.
Now the AI black box and big data usage in computer-driven methods make the technical analysis less reliable. They only use candlestick patterns which do not make any sense as the prediction did not consider fundamental analysis.
Hoskinson’s further said that Cardano has increased by about 670% from year to date. It has also managed to remain and hold its position during the recent crypto market crash with relatively stable performance. No such prediction could destroy its momentum.
ADA/USD Survives Over $1.2585 Support Despite Stronger
The U.S. dollar was strong across the board during late trading hours despite the governor of Federal Reserve Christopher Waller’s hawkish remarks. He said the Fed was thinking of reducing its bond purchases of worth $120 billion per month.
However, this will only be done if the next two months of the jobs report falls between the range of 800K and 1 million. If that target is met, the U.S. economy will be considered to have achieved substantial further progress and reach near the pre-pandemic level. These hawkish comments from Waller added strength to the U.S. dollar and kept ADA/USD under pressure for the day.
Cardano Price Prediction – Technical Levels
Support Resistance
1.287000 1.339413
1.265356 1.370182
1.234587 1.391827
Pivot Point: 1.317769
Cardano Price Prediction – Technical Outlook: Double Bottom Support $1.2580
Cardano price prediction is neutral as the pair is gaining immediate support over the $1.2580 level. The ADA/USD pair has closed a hammer pattern supporting chances of a bullish reversal in Cardano.
Bullish bounce off over $1.2580 can lead the ADA price towards immediate resistance of $1.350 and $1.3922 level.
On the 4-hour timeframe, the 50 days EMA (Exponential Moving Average – Red Line) is likely to extend resistance at the 1.3500 level. Since the ADA/USD price is closing below 50 EMA, the selling bias remains strong. The breakout of 1.2580 level can open additional room for selling until 1.1960 level.
Lastly, the upward channel will be the main highlight of the day, and the breakout of this channel will determine further trends in Cardano.
On Tuesday, the ADA/USD price prediction remains bullish above the $1.2580 level. Therefore, the forex trading participants may look for a buy trade above the $1.2580 level to the target of $1.3550 and $1.3850.
Alternatively, we may see a selling trend upon breakout of $1.2580 level with a target of $1.1967. All the best.
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