A popular cryptocurrency trader that predicted this year’s Bitcoin ($BTC) bear market has predicted that the price of Cardano ($ADA) is set to drop in the near future as the cryptocurrency is “getting weaker and weaker” based on its chart.

According to pseudonymous cryptocurrency analyst Capo, Bitcoin’s support area around the $0.44 mark has now been tested six times and as it gets weaker it’ll likely drop to its next support level at $0.29 to $0.31.

At the time of writing, Cardano is trading at $0.43 after losing roughly 3% of its value in the last 24 hours amid a wider cryptocurrency market downturn that has seen the space enter a so-called Crypto Winter, referring to a prolonged bearish period where prices are muted.

As CryptoGlobe reported, an artificial intelligence-based price prediction model is suggesting that the price of Cardano’s native token ADA is going to surge to trade at $2.9 by September of this year, representing a significant increase from the cryptocurrency’s current price.

It’s worth noting both may be right: the cryptocurrency may lose its support in the short term and then surge later this year. Both may also be wrong, with ADA behaving unpredictably. The cryptocurrency community has, through CoinMarketCap, predicted that ADA will trade at $0.78 by the end of August, and at $0.457 at the end of the year. The community’s near-term bullishness is likely related to the network’s upcoming Vasil hard fork.

The hard fork is expected to deliver a “massive performance improvement” to the cryptocurrency’s network.

Development activity on the Cardano network, which tracks “the number of GitHub events that the project organization generated”, has surpassed that of other major cryptocurrencies, including Ethereum ($ETH) and Solana ($SOL) ahead of the hard fork.

Grayscale Investments has maintained both ADA and SOL as the top holdings in its fund offering investors exposure to smart contract blockchain networks while excluding Ethereum.

According to data from the Grayscale Smart Contract Platform ex Ethereum Fund (GSCPxE), its Cardano allocation is now 30.7%, meaning each share of the fund has 4.4 ADA on it, while its Solana allocation is 26.01%, representing 0.044 SOL per share.

Image Credit

Featured image via Unsplash

Bitcoin traded below the $30,000 mark, while Ethereum and Dogecoin were also weaker over the last 24 hours at press time on Monday evening, as the global cryptocurrency market cap declined 4.4% to $1.3 trillion.

Price Performance Of Major Coins

Coin	24-hour	7-day	Price
Bitcoin BTC/USD	-4.1%	-0.9%	$29,898.70
Ethereum ETH/USD	-5.1%	-8.7%	$2,027.14
Dogecoin DOGE/USD	-4.45%	-14.3%	$0.09

Top 24-Hour Gainers (Data via CoinMarketCap)

Cryptocurrency	24-Hour % Change (+/-)	Price
eCash (AR)	+10.3%	$0.000047
PAX Gold (PAXG)	+0.9%	$1,826.98
TrueUSD (TUSD)	+0.05%	​​$1

See Also: Best USDC Interest Rates

Why It Matters: Cryptocurrencies continue to mirror stocks closely. At press time, the S&P 500 and Nasdaq futures were relatively flat after stocks ended Monday in the red.

The dollar index was 0.08% lower at $104.1 at press time. The measure of the greenback’s strength against six of its peers has slipped from the $105 levels touched on Friday.

On the current state of the dollar index, cryptocurrency trader Michaël van de Poppe said the “highs have been swept for liquidity.”

The analyst tweeted that if the index lost 103.7 points, more downwards pressure could be seen and lead to risk-on assets getting a boost. 

If I look at the current state of the $DXY, I think we’ll follow through with this scenario.

Assuming we’ll be seeing some corrective move, the highs have been swept for liquidity.

Losing 103.7 points and I think we’ll get more downwards pressure here -> risk-on assets up. pic.twitter.com/mRc5SW1nMk

— Michaël van de Poppe (@CryptoMichNL) May 16, 2022

OANDA senior market analyst Edward Moya said that the retail and institutional world “still have massive wounds” from the recent collapse of Bitcoin prices.

“Confidence is weak in the cryptoverse and until stablecoin concerns ease, Bitcoin is in the fight for its life,” said Moya, in a note, seen by Benzinga.

Terra (LUNA) co-creator Do Kwon on Twitter proposed forking the Terra chain into a new chain without algorithmic stablecoins called Terra, with the ticker LUNA, and Terra Classic with the ticker LUNC. 

If Kwon’s proposal passes, the fork will be coordinated with the validators on May 27.

6/ The Terra chain as it currently exists should be forked into a new chain without algorithmic stablecoins called “Terra” (token Luna – $LUNA), and the old chain be called “Terra Classic” (token Luna Classic – $LUNC). Both chains will coexist.

— Do Kwon (@stablekwon) May 16, 2022

Terra USD (UST), an algorithmic stablecoin backed by LUNA, lost its peg to the dollar last week, precipitating the crash in cryptocurrencies. Since then, LUNA has collapsed in value entirely after witnessing massive hyperinflation.

Delphi Digital said that Bitcoin’s latest movement below the $30,000 mark puts its price nearly 60% off its all-time high. However, a big drawdown doesn’t mean “immediate reversal” is imminent. 

BTC-USD Returns After Previous > 55% Drawdowns From ATHs — Courtesy Delphi Digital

“Looking back at historical instances where BTC’s price dropped more than 55% after putting in a new ATH, its average price performance over the following six months was relatively muted at best,” said the independent research firm in a note. 

Read Next: Vitalik Buterin Calls For Bank Deposit Insurance-Like Protection For Small Crypto Investors