Pseudonymous crypto trader and analyst Capo tweets that Cardano (ADA) will see a massive downtrend.
This popular crypto trader with over 307,500 followers on Twitter predicted a massive drop before the coin ends its five-wave Elliott Wave Theory downward move.
Elliott Wave Theory refers to a technical analysis that can predict price movements by examining the psychology of the mind or the behavior of the crowd seen in waves.
Based on the theory, the crypto-asset would always go through a predictive five-wave cycle before making that pivot or reversal.
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Before the coin completes its five-wave down course, Capo anticipates a catastrophic crash (coingape).
Capo predictions on ADA, BTC, Terra, STEPN
According to Capo, ADA is on track to complete the fourth wave, which means it’s ready for this final wave.
Cardano is currently trading at $0.55, which is categorically 45% above the $0.30 price target.
Cryptocurrencies rallied quite a bit on Friday but plunged today in what seemed like a roller coaster of sorts.
The erratic market movements have been a concern for many crypto traders and investors alike. Bitcoin (BTC) is down 3.6% and Cardano (ADA) is down 6.65%.
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With the Federal Reserve firmly in control of monetary policy, there is no indication of an uptrend. The way things are going, many traders are looking for safer crypto assets versus riskier ones.
Meanwhile, Capo is also keeping an eye on STEPN, a move-to-earn app built on the Solana blockchain. Capo says he expects a significantly low trade value of $0.60. Looks like GMT is going down the drain as he describes. GMT is currently trading at $1.52.
ADA Total Market Cap at $18.42B on Weekend Chart | Source: TradingView.com
Bitcoin still better than Cardano?
Bitcoin’s outlook looks good as it continues to correct after breaching key support at $30,000. The $30,000 support reportedly rocked it. A two-day candle has closed just below and is currently tapping this zone for support. At this point, this spot is still not suitable for purchase.
Salt in the wound is the miserable turnout at TerraUSD’s market value, which is pegged to the USD. The price is now at $0.18 this week. Meanwhile, TerraUSD is drafting a recovery plan this week.
Overall, Cardano is more volatile compared to Bitcoin, although it is very appealing to the broader market in general.
Bitcoin promises a long-term uptrend relative to other coins including ADA.
Featured image from Forkast News, chart from TradingView.com
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