- Cardano price has formed an inverted head and shoulders pattern.
- Warren Buffett compared cryptocurrencies to casinos.
- He still expects that most cryptocurrencies will crash to zero.
Cardano price continued its recovery on Wednesday even after Warren Buffett delivered another crypto warning. ADA jumped to a high of $0.41, the highest point since February 18 while Bitcoin price remained above $30,000. In all, Cardano has soared by 65% from its lowest level in March.
Warren Buffett warning on crypto
Warren Buffett traveled to Japan, where he is meeting with the CEOs of the country’s trading companies like Mitsubishi, Mitsui, and Itochu. The visit is notable since it came about three years since he invested in these sogo shoshas. That investment has earned him over $4.5 billion.
In a wide-ranging interview with CNBC, Warren Buffett shared his thoughts on cryptocurrencies. He reiterated that the coins will crash in the coming years as he equated them with gambling. Further, he warned that most people had gained a gambling instinct, which explains why he is opposed to them.
Read more: Here are the best Cardano statistics.
Warren Buffett has been bearish on cryptocurrencies for years arguing that they were worthless and scams. It is also worth noting that Buffett ignored the technology sector, which saw him avoid well-known companies like Google, Netflix, Tesla, and Meta Platforms. In the long run, all these assets have outperformed Berkshire Hathaway by far.
Past predictions by some of the best-known investors, including Charlie Munger, have been proven wrong. Instead, Bitcoin has managed to move from less than $2 in 2009 to the current $30,000. At its peak, it was trading at $67,000.
Meanwhile, Cardano price has been in a strong upward trend after the latest US inflation data. The numbers revealed that the country’s headline inflation continued dropping in March as it slipped to the lowest level since 2021. Therefore, there is a likelihood that the Fed will start pivoting in the coming months.
Cardano price prediction
The 4H chart shows that the ADA price has been in a strong bullish trend in the past few days. It has managed to move from a low of $0.241 in January to the current $0.40. Along the way, the coin has jumped above the 50-period moving average. A closer look shows that the volume has lost momentum.
Most importantly, the coin is approaching the key resistance level at $0.419, the highest point on February 16. This price is the upper side of the inverted head and shoulders pattern.
It is also trading at the 50% Fibonacci Retracement level. Therefore, the coin will likely continue rising as buyers target the next key resistance at $0.50, which is ~25% above the current level.
