Experienced cryptocurrency analyst and trader Capo has shared the altcoin that he expects to fall the most and has shorted the most. Based on the analyst’s statement, it appears that Capo expects the service token of the giant cryptocurrency exchange Binance, Binance Coin (BNB), to crash.
Capo Expects Binance Coin (BNB) to Crash
Capo, an anonymous cryptocurrency analyst and trader, stated that BNB is the altcoin he has shorted the most, saying, “There is a downward trend in both the high-timeframe and low-timeframe charts. I expect bad news to come soon, and it’s a matter of time before it happens. BNB is the altcoin I have shorted the most.”
By analyzing the price chart of Binance’s service token using the Elliot Wave theory, Capo suggests that BNB has broken out of an upward channel and entered a downward trend. Capo’s initial price target for BNB on the downside is $125, which implies a drop of over 48% based on current prices.
Warning of a Drop for Solana and Bitcoin
Capo also revealed that the second altcoin he closely follows is Solana (SOL), which is considered a competitor to Ethereum (ETH). The analyst stated that after failing to hold above $30 as support, Solana will likely drop to $25.36, saying, “I haven’t closed my short position for the medium term. I’m holding it to add more at my entry price of $25.36.”
Regarding the largest cryptocurrency, Bitcoin (BTC), the analyst who applies the Wyckoff distribution schema suggests that the formation of a Sign of Weakness (SOW) indicates an upcoming downside breakout.
The Wyckoff method used by the analyst is a technical analysis type that aims to determine whether major cryptocurrency investors are accumulating or distributing an asset. An accumulation pattern indicates a period in which institutional investors control the price of an asset in order to buy at low prices.
