A closely-followed crypto analyst and trader is warning traders that deep corrective moves are imminent for smart contract platforms Ethereum (ETH) and Cardano (ADA). He also shares Bitcoin comments. The analyst comments in a generally negative tone.
Capo quotes altcoin analysis
As we reported earlier in this article, analyst Capo, who has good predictions, told his 244,000 Twitter followers that he thinks Ethereum could drop to $1,400 after rejecting the resistance around $3,000.
At the time of writing, Ethereum is trading at $2,678, down nearly 15 percent from its seven-day high of $3,189. Looking at Cardano, Capo says he sees that ADA now found support at $0.50 and broke the support at $1.00. “The next level of support is $0.50,” he says.
At the time of writing, Cardano is changing hands at $0.97. If ADA follows Capo’s scenario, moving to $0.50, this represents a downside potential of over 48 percent. Capo is also closely following Ethereum rival Phantom (FTM). He says that this coin also now confirms its bearish thesis and is on its way to its target of $0.95. He posted the graph below, saying “FTM update”:
What do the charts show for Bitcoin?
As for Bitcoin (BTC), Capo says it monitors supply and demand by providing a visual representation of the market’s order book. According to the crypto analyst, the heatmap sees Bitcoin sparking another selling event as it shows limited demand. “The little demand there is weakening and supply is strengthening. Horizontal movement = correction. More negativity is expected soon,” he says.
Capo also says he expects BTC to eventually gain support around $30,000. He states that the rise between $43,000 and $44,000 is complete in the short term. In the medium term, he says, the drop to $38,000-39,000 for the largest cryptocurrency by market cap is complete. Now, he thinks that $21,000 and $23,000 levels can be expected with a downtrend below $30,000.