A popular crypto trader predicts more corrective actions for the smart contract platform Cardano (ADA) and one of this year’s trending altcoins.
Pseudonymous cryptanalyst Capo tells his 307,500 Twitter followers that ADA is primed for another move lower before completing its five-wave downtrend based on the Elliott Wave Theory.
Fifth wave missing.
The main support is located at $0.30 – $0.35.”
The Elliot Wave Theory is a technical analysis approach that attempts to predict future price movements by following crowd psychology, which tends to manifest itself in waves. According to the theory, an asset goes through a five-wave cycle before a major market reversal.
Capo says ADA is close to completing its fourth wave, suggesting coin is ready for one final flush. Cardano is trading at $0.55 at the time of writing, which is 45% off the analyst’s downside target of $0.30.
Capo is also closely monitoring the STEPN (GMT) move-to-earn protocol, which is based on the Solana (SOL)–Blockchain builds up. According to the crypto strategist, he sees GMT trading as low as $0.60.
“GMT has come home, but now it has to go in the basement.”
GMT is trading at $1.52 at the time of writing.
With a view to Bitcoin (BTC) Capo says he expects BTC to continue correcting after breaking key psychological support of $30,000.
“After the fifth touch of the $30,000 support, it was broken. The previous two-day candle closed below and is now testing this zone for support. In my opinion this is not a good place to buy. It hasn’t regained that level even on a high timeframe. $21-$23,000 still in play.”
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Source: Crypto News Deutsch