Crypto analyst Justin Bennett sees further market corrections for altcoins on the horizon.
The popular trader tells his 67,600 Twitter followers that the native asset of the smart contract blockchain Cardano (ADA) could be in for a serious pullback.
Cardano’s native asset ADA is trading at $2.39 at time of writing and is down 5% in the past week, according to CoinGecko.
Bennett says,
“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.”
The analyst also says the interoperable blockchain platform Polkadot could face similar issues, despite the project’s strong week. Polkadot’s native asset DOT is trading at $37.63 and is up nearly 35% on the week.
As Bennett explains,
“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.”
The analyst seems more ambivalent about the native asset of the top smart contract platform Ethereum (ETH), however.
ETH is trading at $3,428.89 at time of writing and is priced nearly exactly what it was one week ago.
“Trying to make sense of ETH… This is probably THE support level to watch right now.
Break that, and we likely see $3,000 again. Break higher out of this consolidation, and another run at $3,550 – $3,700 seems likely.”
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Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
