Cardano price has crashed by double digits in the past few weeks, and a risky chart pattern suggests an eventual bearish breakout. ADA was trading at $0.576, down by over 33% from its highest point in May and by nearly 60% from its highest level in January.
Cardano Price Inverse C&H Pattern Forms
The daily chart indicates that the Cardano price remains below the descending trendline connecting the key swings since December last year. It has also formed an inverse cup-and-handle pattern.
As the name suggests, this pattern resembles a cup placed upside down. In this, it has a rounded top, whose upper side reaches $0.863, its highest point in May of this year.
The lower part of the pattern is made up of some sideways consolidation, which resembles a cup’s handle. In most cases, this pattern usually leads to a bearish breakout, which is confirmed when it moves below the lower side of the cup.
Therefore, by measuring the cup’s depth and translating the same from its lower side, we can estimate the target at $0.175. This crash will also be confirmed if it moves below the key support at $0.317, the lowest swing in November last year.
The bearish Cardano price forecast will become invalidated if it rises above the descending trendline. Such a move will likely lead to further gains, potentially reaching the psychological level of $1.
Cardano price chart | Source: TradingView
READ MORE: Dogecoin Price Prediction: Classical Pattern Points to a DOGE Surge
Block3 is Gaining Steam
While Cardano price has more downside, crypto investors are shifting to a new disruptor known as Block3, whose ticker symbol is BL.
Cardano and Block3 are different products. On the one hand, Cardano is a layer-1 network that enables developers to build applications in areas such as gaming, NFTs, and decentralized finance (DeFi).
Block3, on the other hand, is a crypto project aiming to disrupt the gaming industry using artificial intelligence. If successful, this platform will disrupt popular game studios like EA Sports and Take-Two Interactive.
It will also disrupt gaming companies like Unity and Unreal Engine, which developers use to build games. This will happen because its AI engine will be able to create simple and highly advanced games by just writing a prompt as one does with ChatGPT and Grok.
As a result, Block3 will reduce the game-creating time from months to a few hours or minutes. It will also save these companies a lot of money and boost their profitability. This explains why Block3 has raised $810,000 in the last three days. Hurry up and buy BL3 before the next price increase.
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