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.”

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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