Crypto Analyst Capo Projects Bearish Price Action For ADA, LUNA, FTM
A popular crypto analyst and trader known as Capo is predicting bearish price actions for three Ethereum rivals Cardano (ADA), Terra (LUNA) and Fantom (FTM).
Cardano (ADA)
The analyst shared with his 243.5K followers on Twitter that ADA is attempting to break support at $1.00 after touching the critical support level several times over the past year or so.
“6th touch of main support for ADA.
What do you think (Charles Hoskinson)? How low will it go?”
Testing support several times is considered as a bearish signal in technical analysis as it often is a sign of exhaustion of demand at the support level.
On the monthly timeframe, the analyst notes that ADA looks to have completed a five-wave uptrend, meaning that a bearish season is about to begin.
In his analysis, Capo uses Elliott Wave theory, a form of technical analysis used to analyze financial market cycles and forecast market trends by identifying extremes in investor psychology and price levels, such as highs and lows, by looking for patterns in prices. A typical trend goes through five waves before a major market reversal.
Terra (LUNA)
The analyst is also looking into decentralized finance payment network Terra (LUNA). After failing to push through resistance at $60 mark, Capo believes continued downtrend is more likely.
The trader is also keeping an eye on Fantom (FTM), a network of custom blockchains with the aim to power smart cities. FTM is likely to pull back to $1.00 after failing to keep up its bullish market structure (MS) and losing support at $2.10, Capo analyses.
“Similar to LUNA and many others. Broken bullish MS and three waves up. Most likely support should be $1.00.”
