Analyst Benjamin Cowen Suggests Cardano (ADA) Could Be Moving into ‘The Depression Phase’

A widely followed cryptocurrency analyst asserts that the smart contract platform Cardano (ADA) is evidently transitioning into a phase of market downturn, characterized by a significant potential decline in its price.

In a recent strategic discourse, crypto analyst Benjamin Cowen addresses his extensive audience of 786,000 subscribers on YouTube, indicating that this competitor to Ethereum (ETH) is poised to undergo a more profound correction period, potentially reaching the nadir of a bear market with markedly reduced valuations.

Cowen draws parallels between ADA’s trajectory and the historical patterns of the Nasdaq during the years 2002-2003, illustrating that despite experiencing substantial price declines and enduring protracted bearish conditions, there exists the possibility of a sudden, substantial plummet in prices following rejection from the 50-week moving average.

“Following the last, desperate attempt by the bullish market at the 50-week moving average, the Nasdaq plummeted by 50%. Applying a similar scenario to ADA—starting not from the current value of $0.26, but from its former value of $0.37—what would a decline of 49% to 50% entail? This would position ADA below the $0.20 threshold.

Alternative measurements can also be employed. Instead of initiating from that point, one could compute it from a lower low, specifically the penultimate low leading to the ultimate low, constituting a 27% drop. A 27% drop from this juncture would cascade ADA’s value down to $0.16—a notably significant level that aligns with ADA’s valuation in August 2020.”

While refraining from specifying precise target values, Cowen delineates prospective price levels for Cardano, ranging from $0.17 to $0.07, at which the cryptocurrency might find its lower limit.

“Several other pivotal levels come into play here. The $0.11 threshold correlates with the peak from 2019, and significantly further down, there’s the pre-pandemic peak, situated at approximately $0.07 to $0.08. It’s imperative for me to convey that, should we indeed traverse into this phase of market downturn, I cannot ascertain the extent of the decline with certainty—my knowledge on that remains quite limited…

Hence, it’s more imperative to contemplate whether this signals the commencement of such a phase. Are we poised to delve into this phase of market downturn? Despite several consecutive weeks of negative performance, a resurgence in the short term could potentially transpire, attracting a final wave of impulsive investments. Nonetheless, the inherent risk factor should not be dismissed, and I advocate for heightened awareness of this prospect at this juncture.”

Read Also: JPMorgan Chase Releases Market Update, Anticipates a 116% Surge in One Stock