Bitcoin was unable to rise after a few weeks of consolidation and eventually broke to the downside. As a result, there was a significant liquidation, and the largest coin by market cap dropped below the important support level of $30,000.
Cardano (ADA), on the other hand, has achieved a solid rebound in the last 24 hours, despite a huge crash. Its price dropped to $0.40 yesterday, where it found support, and it now lies just below the critical resistance level of $0.59.
A well-known crypto trader is forecasting more corrective moves for Cardano, a smart contract platform, and one of the year’s most popular altcoins. Based on Elliott Wave theory, pseudonymous crypto analyst Capo claims that ADA is set for another leg down before completing its five-wave slump.
The Elliott Wave hypothesis is a type of technical analysis that tries to anticipate future price action by observing how chevaliers behave in waves. Before a large market reversal, an asset passes through a five-wave cycle, according to the hypothesis.
Capo claims that ADA is about to complete its fourth wave, implying that the coin is nearing the end of its journey. Cardano is currently trading at $0.55, which is 45 percent higher than the analyst’s $0.30 downside target.
The trader is also keeping a close eye on the Solana (SOL) blockchain-based move-to-earn technology STEPN (GMT). GMT might trade as low as $0.60, according to the crypto strategist.
$21k-$23k still in play for BTC
He believes that Bitcoin (BTC) will continue to correct after breaching the critical psychological support level of $30,000.
“After the fifth touch of the $30,000 support, it broke it. Previous two-day candle closed below it, and now it’s testing that zone as support. In my opinion, this is not a good spot to buy. It hasn’t even reclaimed that level on a high timeframe close. $21,-$23,000 still in play.”