Justin Bennet Warns Looming Correction For Cardano (ADA) and Polkadot (DOT)
According to Justin Bennett, a prominent cryptocurrency analyst and trader, further market corrections are looming for two altcoins.
Cardano (ADA) is forming a rounding top
Bennett shares with his 68K Twitter followers that Cardano that recently announced launch of smart contracts could be looking a serious pullback ahead.
At the time of writing, Cardano’s native token ADA is trading at $2.47, recording 3.4% gains on the daily chart.
According to Bennett ADA is forming a rounding top, and should rise above one key level, or see further downturn.
“Another look at ADA shows a rounded top and a recent channel break at $2.44. Needs to close above $2.55 to get itself out of this mess. Otherwise, it’s on its way to $2.”
Another look at $ADA shows a rounded top and a recent channel break at $2.44.
Needs to close above $2.55 to get itself out of this mess.
A rounding top is a chart pattern used in technical analysis identified by price movements that, when graphed, form the shape of an upside-down “U.” Rounding tops are found at the end of extended upward trends and may signify a reversal in long-term price movements.
Polkadot (DOT) might be repeating previous pattern
According to Bennett Polkadot could face similar issues, despite the project’s strong week. Polkadot’s native token DOT is trading at $36.06 with 2.3% loss on a daily chart.
The analyst warns that despite some predictions of further upside, a similar setup earlier this year ended up otherwise.
“I know a lot of people are expecting DOT to continue higher, and maybe it will. But we’ve seen this before, and it didn’t end well. I’m not saying it will happen again. Nobody knows the future. Just be careful out there.”
I know a lot of people are expecting $DOT to continue higher, and maybe it will.
But we've seen this before, and it didn't end well.
I'm not saying it will happen again. Nobody knows the future.
