Analyst Benjamin Cowen Predicts Cardano (ADA) Entering 'Depression Phase'
Prominent crypto expert suggests Cardano (ADA), a smart contract platform, may be heading into a 'depression' stage, potentially leading to a notable price decrease.
In a recent strategic discussion, Benjamin Cowen, a well-respected cryptocurrency commentator, addressed his significant YouTube audience of 786,000 about Cardano (ADA), drawing parallels between its current trajectory and historical Nasdaq trends from the early 2000s. Delving into these patterns, he suggests that ADA, despite its popularity as a smart contract platform similar to Ethereum (ETH), could be headed for a profound downturn, echoing historical market behaviors.
Reflecting on the Nasdaq's performance two decades ago, Cowen emphasized that markets can plummet drastically even after enduring a prolonged bearish phase, highlighting a particular instance when it declined 50% upon facing resistance at the 50-week moving average. Applying this historical context to ADA's current situation, Cowen calculates potential repercussions. Should ADA experience a comparable decline from a $0.37 mark, the crypto's value could plummet below $0.20. He suggests further possibilities by examining a 27% decrease from a lower base value, hinting at a descent to the $0.16 level—a price ADA last touched in August 2020.
While Cowen refrains from pinpointing exact predictions, he suggests potential nadirs for ADA could lie at $0.17, $0.12, or even as low as $0.07. He alludes to other potential support zones, referencing the 2019 high of $0.11, and the pre-pandemic peak of $0.07 to $0.08. Cowen candidly admits the unpredictability of a potential 'depression phase' for ADA, emphasizing his uncertainty about its lowest possible limit.
Cowen's overarching message focuses on market vigilance. He hints at the potential onset of a 'depression phase' for ADA, referencing its recent successive downturns. Despite the possibility of temporary market recoveries that might entice investors, Cowen cautions his followers about the inherent risks, advocating for informed and cautious decision-making in these uncertain times.
I
Aug 28, 2023
