Peter Brandt has suggested that the volatile move Cardano, Ethereum, and Bitcoin are experiencing right now could end up similarly to that of the early Microsoft (MSFT) stock patterns from 2007-2013.
The first chart represents the company’s stock patterns from 2007-2013 wherein each share was trading in the $12-$27 range, while the other chart shows the company’s recent all-time high to $286 reached on July 23.
While analysts usually resort to comparing the growth of cryptocurrencies to that of tech companies, not all comparisons might be applicable to every situation.
Despite this, Brandt suggests that Microsoft could serve as a perfect example for cryptocurrencies like Cardano, Ethereum, and Bitcoin who might similarly end up positioning to meteoric highs sometime amid its recent price fluctuations.
For instance, Bitcoin, at one point in time saw ATH of $20,000 during the 2017 bull run while its recent all-time saw a whopping $65,000 in March.
However, Microsoft’s growth has been largely attributed to its cloud-computing services in the 2010s while cryptocurrencies are controversial and yet to see broader mainstream adoption.
The recent spike in buying pressure behind Cardano (ADA) has sent the prices of the cryptocurrency above the pattern’s right shoulder, giving a bearish outlook.
Despite this, Peter Brandt has a bullish outlook on ADA as long as the $1.25 support level continues to hold, otherwise, it could re-test support below $1:
At one point in time, Brandt compared Cardano (ADA) with Litecoin (LTC) in 2018 when the latter formed a head and shoulders pattern leading to a subsequent downfall.