Correctly predicting this year's Bitcoin (BTC) crash, the analyst predicts further corrections for Cardano (ADA) and Cronos (CRO).
The analyst, known to the market as Capo, tells his 438,400 Twitter followers that Cardano's support of around $0.44 is about to collapse after losing six times in less than two months.
According to the analyst, ADA will lose more and more momentum and drop to the next support levels at $0.29-0.31. As of now, ADA is trading below the support level indicated by Capo and is down about 6% in the last 24 hours at $0.43.
Another altcoin on the analyst's list is Cronos, the cryptocurrency that powers the Crypto.com payment, trading and financial services platform. According to Capo, the CRO has broken out of the horizontal support levels and looks set to start the next bearish cycle.
According to the analyst, the CRO could decline towards the $0.055-0.065 levels. The altcoin is currently trading at $0.11. Capo predicts a roughly 50% correction for Cronos.
The crypto strategist also issues a general warning to investors, suggesting that new inflation data could push cryptos to 2022 lows. According to the analyst, all charts show signs of weakness. New falls are just a matter of time. The CPI will be released this week and the decline in Bitcoin could deepen. The new CPI data is scheduled to be announced tomorrow. High inflation figures forced the Federal Reserve to raise interest rates. At-risk assets such as cryptocurrencies have been hit hard in this environment. Traders are keeping a close eye on the CPI data as the new data could signal that the Fed may start a new series of rate hikes.
In 2022, Bitcoin and the overall crypto market suffered from various macro factors such as the Russian invasion of Ukraine, rumors of harsh regulation, and unemployment rates. Meanwhile, wiped out crypto projects and bankrupt companies fueled this crisis. Bloomberg Analyst McGlone noted that if the stock market continues to decline at a similar pace in the first half of the year, the government's last 75 basis point rate hike in June could be the last of the year. Such an outcome could allow cryptocurrencies to regain momentum as investors re-enter the market.