Cardano (ADA) To Crash 60% or To Reach $5 In 2021? – Top Analyst’s Prediction
Top analyst Jason Friedman from popular crypto channel A Chain of Block shares with his subscribers his price expectation for Cardano (ADA) in 2021 as the network development and upgrades Alonzo is coming.
According to the trader, although Cardano is close to attaining the title of a fully-fledged smart contracts platform following a critical upgrade in mid-July, there is a bearish setup for ADA.
“Here we have a classic technical pattern, we call it Head and Shoulders pattern, that predicts a bullish-to-bearish trend reversal for the Cardano token that is already up more than 600% on a year-to-date timeframe,”
He furthers explain:
“Head and Shoulders forms when the price forms three consecutive peaks atop a single support level, with a condition that the middle peak is higher than other two, which are typically of the same height. The price eventually breaks below the support levels, also called neckline, and falls by as much as the maximum height between the middle peak’s top and the support level,”
The analyst predicts that ADA is going to experience a massive drop to the downside. Particularly, ADA can drop as far as $0.35, down 60% from the current price at $1.32.
Yet, analyst Friedman shares his optimism that ADA will definitely be able to bounce back and possibly reach another ATH due to 2 reasons: its strong and enthusiastic community as well as the much-awaited Alonzo upgrade.
“Since Alonzo brings the smart contract functionality to the network, the community has been eager to see them in action, as it entails the enabling of decentralized applications on the blockchain,”
Moreover, he notes that after that, the blockchain will go through phases four and five of the project’s roadmap, named Basho and Voltaire. Basho will improve the scalability and interoperability of the network, while Voltaire promises to make the network “truly decentralized” with the transfer of the entire governance mechanism to network participants, and will no longer be under IOHK’s management.