Anonymous crypto trader and analyst Capo tweeted that Cardano (ADA) is bound to go in a massive downtrend.
This popular cryptocurrency trader with over 307,500 followers on Twitter predicted a massive drop before the coin finished its five-wave downtrend after Elliott Wave Theory.
Elliott waves theory relates to technical analysis that can predict price movement by looking at the psychology of mind or the behavior of the audience that can be seen in waves.
Based on the theory, a crypto asset will always go through a predictive five-wave cycle before it makes that pivot or reversal.
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Before the coin completes its five-wave downward course, Capo anticipates a catastrophic crash (Coingape).
Kabo Predictions on ADA, BTC, Terra and StepN
According to Capo, the ADA is on its way to completing the fourth wave which means it is ready for that final wave.
Cardano is currently trading at $0.55 which is definitively 45% above the $0.30 target price point.
Cryptocurrencies recovered a bit on Friday but crashed today which seemed like a quick ride of sorts.
The erratic market movements have been worrying many cryptocurrency traders and investors alike. Bitcoin (BTC) is down 3.6% and Cardano (ADA) is down 6.65%.
With the Federal Reserve clamping down on monetary policy, there is no hint of an upward trend. With the way things are going, many traders are looking for safer crypto assets as compared to riskier ones.
Meanwhile, Capo is also keeping an eye on STEPN, a mobile earning app built on the Solana blockchain. Capo says he is looking at a significantly lower turnover of $0.60. GMT appears to be heading down the basement, he describes. GMT is currently trading at $1.52.
ADA total market cap at $18.42 billion on the weekend chart | Source: TradingView.com
Is Bitcoin Still Better Than Cardano?
Bitcoin’s outlook looks good as it continues to correct after breaking the major support that was locked at $30,000. The $30,000 support is supposed to have hurt him. A 2-day candle has closed just below it and this area is currently using as support. At this point, this spot is still not a good buy.
Adding salt to the wound is the miserable turnout in the TerraUSD market cap, which is pegged to the US dollar. It is now at $0.18 this week. In the meantime, TerraUSD charts a recovery plan this week.
In general, Cardano is more volatile compared to Bitcoin although it is attractive to the broader market in general.
Bitcoin promises more to be bullish in the long term compared to other currencies, including the ADA.
Featured image from Forkast News, chart from TradingView.com