The trader known for calling the current crypto market downturn says that Ethereum and one of its biggest challengers are on the edge of another sizeable drop.
The pseudonymous trader known as Capo tells his 429,000 Twitter followers that Cardano (ADA) has now touched a critical support level near $0.44 for the fifth time.
Traditionally, the more a support level is tested, the weaker it gets, and Capo says ADA’s $0.44 range is no exception.
5th touch. The support won’t hold.”
Looking at Ethereum (ETH), the analyst looks at reports from blockchain tracking service Whale Alert that appear to show large entities sending big amounts of ETH to crypto exchanges.
According to Capo, whales sending this much ETH to FTX could be a bearish sign for the second biggest crypto asset by market cap.
“Last time we saw ETH being sent to FTX, price dumped hard.”
Capo says macro conditions are also weighing down on crypto markets. The analyst points out how the US dollar index (DXY) is surging against a weakening S&P 500 and implies Bitcoin (BTC) will likely be affected.
“DXY flying, SPX nuking
Guess what BTC will do”
Capo says that technically, Bitcoin is still printing textbook bearish price action. The popular analyst says every bounce in BTC is merely a retracement on its way down, and he reveals his main downside target, which is up to 23% away from current prices.
Lower highs all the time. Pumps have low volume and they look corrective.
Main target remains $15,800-16,200.”
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