Widely followed cryptocurrency traders are predicting further corrective action by smart contract platform Cardano (ADA) and one of the trending altcoins of the year.
A pseudonymous cryptocurrency analyst, Capo, told his 307,500 Twitter followers that the ADA is gearing up for another decline before completing a five-phase downtrend according to Elliott Wave theory.
The fifth wave is missing.
The main support is $0.30 – $0.35.”
Elliott Wave Theory is a technical analysis approach that seeks to predict future price action by following crowd psychology that tends to appear as waves. According to theory, assets go through a five-phase cycle before major market reversals.
Capo says ADA is about to complete its fourth wave, suggesting that the coin is ready for a final flush. Cardano is trading at $0.55 at the time of writing, which is 45% above the analyst’s downside target of $0.30.
Capo is also keeping a close eye on STEPN (GMT), a mobile revenue protocol built on the Solana (SOL) blockchain. According to a cryptocurrency strategist, he sees GMT trading as low as $0.60.
“GMT is back home, but now we have to go downstairs.”
GMT is trading at $1.52 at the time of writing.
Looking at Bitcoin (BTC), Capo said he expects BTC to continue to correct after breaking the key psychological support level of $30,000.
“After the fifth touch of $30,000 support, the support stopped. The previous two-day candle closed below it and is now testing the area as support. In my opinion, this is not a good place to buy. Even at the end of the high period it did not recover that level. $21,-$23,000 are still in use.”
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