Cardano (ADA) and Two Other Ethereum Rivals at Risk for Major Bearish Reversals: Crypto Analyst
A closely followed crypto strategist is predicting major bearish price actions for Ethereum challengers Cardano (ADA), Terra (LUNA) and Fantom (FTM).
Pseudonymous trader Capo warns his 243,400 Twitter followers that Cardano is threatening to breach support at $1.00 after tapping the crucial level multiple times in the last 12 months.
“Sixth touch of main support for ADA.
What do you think [Charles Hoskinson]? How low will it go?”
In technical analysis, hitting support multiple times is a bearish signal as it indicates the potential exhaustion of demand at the price level.
Looking at the monthly timeframe, Capo says that Cardano has likely completed its five-wave uptrend, suggesting that a bearish reversal is on the horizon.
“Is no one going to talk about this?”
Capo subscribes to the Elliott Wave theory, a technical analysis approach that predicts future price action by following crowd psychology that tends to manifest in waves. According to Elliott Wave, a typical trend goes through five waves before a major market reversal.
Capo is also keeping a close watch on decentralized finance payment network Terra (LUNA), which he says is likely to continue its downtrend after failing to take out resistance at $60.
“LUNA going according to the plan.”
The last coin on Capo’s radar is Fantom (FTM), a network of custom blockchains that aims to power smart cities. According to the crypto analyst, FTM is poised to drop to $1.00 after breaking its bullish market structure (MS) and failing to hold support at $2.10.
“Similar to LUNA and many others. Broken bullish MS and three waves up. Most likely support should be $1.00.”
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Author: Daily Hodl Staff
