A widely followed crypto strategist is issuing a warning to altcoin traders, saying that smart contract platforms Cardano (ADA), Solana (SOL) and two other digital assets are flashing bearish signals.
Pseudonymous trader Capo tells his 245,800 Twitter followers that he remains bearish on the broader crypto markets despite the surge in the last 24 hours.
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According to the crypto strategist, the latest rally is a bull trap, and altcoins will likely resume their downtrends.
“Some people may think I’m biased to the downside. Later I will post a lot of examples of altcoins that are doing corrective moves to the upside after breaking key supports.”
One coin on Capo’s radar is Cardano, which the crypto analyst says is showing clear signs of rejection.
“One of the clearest: ADA.”
Another coin on the trader’s list is Solana. According to the crypto strategist, SOL failed to recapture resistance around $120 and is now at the tail end of a bounce.
Next up is Waves (WAVES), a blockchain platform that allows users to create, launch and trade their own crypto tokens.
Capo believes that Waves is also set to end its rally soon.
The last coin is payments infrastructure platform Coti (COTI), which Capo says is facing heavy resistance at $0.24.
According to Capo, the four altcoins’ market structures represent the price action of most coins.
“These are just some examples, but 99% of the altcoins look like this. It’s impossible for me to be bullish here, after the break of all the bullish market structure + correctives moves to the upside. You can enjoy the low timeframe pumps while they last, but don’t get too comfy. Time will tell.”
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Featured Image: Shutterstock/Papapig
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