According to KOL Capo, Cardano (ADA) and two other Ethereum competitors are threatened with a sharp drop in the near term

A closely-watched analyst thinks Ethereum challengers Cardano (ADA), Terra (LUNA), and Fantom (FTM) could crash in the near-term.

Analyst Capo warned his 243,400 Twitter followers that Cardano is threatening to break the $1.00 support level after testing this key level multiple times over the past 12 months.

This is the 6th time ADA has retested the key support level.

What do you think of [Charles Hoskinson]? How low will the price go?

ADA/USDT 3-day chart | The source: Capo/Twitter

In technical analysis, testing support multiple times is a bearish signal as it will reduce demand in this zone.

Looking at the monthly timeframe, Capo says that Cardano has likely completed a five-wave bullish pulse, suggesting a bearish reversal is approaching.

“No one has talked about it before.”

ADA/USDT Monthly Chart | The source: Capo/Twitter

Capo is based on Elliott Wave Theory, a technical analysis method that predicts future price movements by analyzing crowd sentiment during each wave. After the Elliott wave, the asset will enter a major corrective phase after the completion of a 5-wave bullish impulse.

Capo is also keeping an eye on decentralized finance payments network Terra (LUNA), which he thinks is likely to resume the downtrend after failing to break above the $60 resistance level.

“LUNA moves as planned”.

LUNA/USDT 2-day chart | The source: Capo/Twitter

The final coin on Capo’s radar is Fantom (FTM), a blockchain designed to power dApps and solve the network scaling problem. According to the analyst, FTM is poised to drop to $1.00 after it broke the bull market structure and failed to hold the $2.10 support.

“Similar to LUNA and many other altcoins. The bullish structure was then broken with three bullish waves. A drop to the $1.00 support is more likely.”

FTM/USDT 2-day chart | The source: Capo/Twitter

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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