Cardano [ADA] Investors’ positive expectations for the upcoming Vasil upgrade could be dampened. No, it’s not because the upgrade might present any problem, but the focus on value for money.
Renowned trader and analyst Peter Brand said via Twitter that ADA was still headed for doom despite its recent underperformance. According to Brandt, ADA’s pattern lately has reflected more bearish signals.
In his tweet, the analyst pointed to the descending triangle, which calls for a further decline in ADA.
— Peter Brandt (@PeterLBrandt) September 14, 2022
Are predictions possible?
While Brandt noted that nothing was certain, the patterns on the chart seemed to indicate acceptance. According to the four-hour chart, ADA had formed ascending triangles on two occasions since the beginning of September. The first took place between September 3 and 4, while the other took place between September 8 and 10.
However, in both cases, ADA experienced some ups and downs before finally falling into long red candles. With its current trend, ADA looked likely to succumb to a capitulation, especially as the Bollinger Bands (BB) revealed the volatility stance. According to BB, ADA volatility was currently in an extreme zone.
However, there may be potential truths in Brandt’s prediction. This is due to the indications from the exponential moving average (EMA). At the time of writing, the 20 EMA (blue) was just below the 50 EMA (orange), indicating that sellers forced buyers out of market control. This position was also demonstrated by the Directional Movement Indicator (DMI).
The DMI agreed with the EMA regime as the strength of sellers (red) at 23.65 was firmly above buyers (green) at 12.90. Additionally, the Average Directional Index (ADX) indicated that the seller’s strength was very tough, which buyers may have found impossible to reverse in the short term.
With this current momentum, ADA could likely continue in a bearish direction more than a bullish reversal.
Measurements on the chain
Since Vasil’s upgrade was a week away, it seemed necessary to check the metrics within the ADA chain. According Santiment, the Thirty-day Market Value to Realized Value (MVRV) ratio was at -0.0135%. This value meant that ADA’s realized value was worth more than its market capitalization.
Not much has happened or the ADA chain as development activity has followed a downward trend. At the time of publication, development activity was 27, although it was 40 on September 5.