When will Cardano Reach US$20? Its ‘Burj Khalifa’ Pattern Indicates More Losses

Will Cardano reach US$20? Its Burj Khalifa pattern speaks a different story altogether

According to coinmarketcap, at the time of writing this article, the Cardano price is hovering over the US$0.3390 range. The Cardano had been among the top cryptocurrencies for quite a long time now and has proven itself to be one of the most affordable, yet profitable cryptocurrencies in the world. But its fall into the bearish territory has decreased its value by more than 40% over the last two months. However, ADA has recovered faster than Bitcoin and Ethereum, as both cryptocurrencies were on the edge of reaching the ominous 'death-cross' pattern. Cardano's steady recovery is one of the major reasons why investors were so excited about the returns that the crypto has to offer. But unfortunately, the threats to financial stability are yet not over! ADA's Burj Khalifa pattern is something that definitely feels luxurious, yet might be a great investment threat! The ADA-USD has also risen by about 300% over the past 12 months, but the token's continued downtrend is definitely worrisome.

Cardano has got some impressive fundamentals that can support its long-term growth. The ADA blockchain successfully implemented the Vasil hard fork. The upgrade has become quite popular as a necessary shift in the blockchain community, introducing benefits like increased transaction speed and reduced fees. Vasil has also been one of the biggest upgrades in the Cardano blockchain since Alonzo, added smart contracts to the blockchain. The launch of the Vasil hard fork made it Ethereum's biggest competitor in 2022. After the integration of the new upgrade, trading activities on the network also grew massively. The blockchain also witnessed a massive hike in NFT activities and transactions, with its volumes hitting 3 million ADA tokens. However, the Cardano price action is demonstrating a weird 'Burj-Khalifa' pattern that is actually worrying analysts and investors about its future prospects.

So, what does this 'Burj-Khalifa' pattern indicates?

Cardano continues to paint a red price trend as the token fell to its lowest level since February 2021. The trend caused ADA's price to rise nearly 800% between February 2021 to September 2021, but those gains were wiped out entirely when October 2022 kicked in. Quite surprisingly, the price action took the shape of the 'Burj-Khalifa' building! Experts believe that the token could witness another session of the downfall by over 40%. The launch of the Vasil hard fork was definitely a boost for the blockchain industry, however, it has not significantly helped the value of the Cardano token to rise, instead, its value fell by over 25% since the launch. Besides this, the ADA/USD pair also broke a key support level that might eventually lead to another major crash in Q4 in 2022.

ADA's potential to continue its prevailing downtrend might also become higher if it forms and breaks out of its continuing downtrend triangle. In a nutshell, Cardano continues to trend ahead under increasing macro risks. After Russia and Ukraine's continued struggle, the US and China are coming up with their new AI chip war. China's continued dominion over the artificial intelligence domain and the US' continued fears of taking hits for the Chinese government have resulted in the eruption of a cold war, that is affecting the economic and financial markets, including the crypto market.

Bottom Line

Currently, the crypto economy is constantly plummeting and the rising microeconomic conditions are making things worse for the crypto community. However, the crypto economy is poised to welcome more projects as digital currencies are becoming more mainstream. The growth and development of the ADA ecosystem point toward progress, but investors should be careful about the ongoing volatilities that the network might possess.