Pseudonymous crypto trader and analyst Capo tweets that Cardano (ADA) is bound for a massive downtrend.
This popular crypto trader with over 307,500 Twitter followers predicted a massive drop before the coin completed its downward trajectory in five waves following the Elliott Wave Theory.
Elliott Wave Theory relates to technical analysis that can predict price action by examining the psychology of the mind or crowd behavior that can be observed 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 downward course, Capo anticipates a catastrophic crash (Coingape).
Capo predictions on ADA, BTC, Terra, STEPN
According to Capo, ADA is close to completing the fourth wave, which means he is ready for this final wave.
Cardano is currently trading at $0.55, which is emphatically 45% above the target price of $0.30.
Cryptocurrencies rallied a bit on Friday, but crashed today, which felt like something of a rollercoaster ride.
Erratic market movements have been worrisome for many crypto traders and investors. Bitcoin (BTC) fell 3.6% and Cardano (ADA) fell 6.65%.
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With the Federal Reserve exercising tight control over monetary policy, there is not the slightest hint of an uptrend. With the way things are going, many traders are looking for safer crypto assets than riskier ones.
Meanwhile, Capo is also keeping tabs on STEPN, a money-making mobile app built on the Solana blockchain. Capo says he is looking at a very low trade value of $0.60. Looks like GMT is heading underground, as he describes it. GMT is currently trading at $1.52.
ADA total market cap at $18.42 billion on the weekend chart | Source: TradingView.com
Bitcoin still better than Cardano?
The outlook for Bitcoin looks good as it continues to correct after breaking above key locked support at $30,000. The $30,000 support supposedly shook it up. A two-day candle closed just below and is currently using this area as support. At this point, this place is still not good for buying.
Adding salt to the wound is TerraUSD’s miserable market value stake which is pegged to the USD. It is now priced at $0.18 this week. Meanwhile, TerraUSD is building a recovery plan this week.
Overall, Cardano is more volatile than Bitcoin, although it is very popular with the broader market, in general.
Bitcoin has more promise to be long-term bullish than other coins, including ADA.
Featured image from Forkast News, chart from TradingView.com