Cardano (ADA) Downtrend To Go On Five More Months, Analyst Benjamin Cowen Says

Cardano (ADA) Downtrend To Go On Five More Months, Analyst Benjamin Cowen Says

It has been revealed that the downtrend of Cardano could last five more months. Check out the latest reports about this below.

ADA could still drop in price

Buy Property with Cryptocurrency

It seems that Cardano’s (ADA) bear market still has a long way to go before it reaches its bottom, as per crypto analyst Benjamin Cowen. In a recent strategy session, Cowen predicted that ADA may take until the end of 2023 to find its bottom, based on previous market cycles.

Cowen also recommends monitoring ADA/BTC closely, as the pair reaching around 0.000004 BTC ($0.11) could indicate a bottom for the smart contract protocol.

“We know we’ve just put in a new low. Again, based on the [last cycle], we know that it can last for another five months or something.

So that’s something to think about. It’s really hard calling bottoms.”

He continued and said the following:

“I think it’s more important to look at the ADA/BTC valuation and to see if it holds its lows, maybe future lows. Let’s say, if it goes to 400 satoshis (0.000004 BTC), if it can hold those levels, then it might start to justify it. But right now, in my opinion, it’s a little bit harder to justify it.”

He also stated this:

“Not to say that it can’t bounce back up on its USD pair if Bitcoin goes back up, we know that it probably would, but the problem is that, again, if it’s bleeding against Bitcoin, no matter if Bitcoin is going up or down, then the risk-adjusted returns are not as attractive as just holding Bitcoin during this phase of the market cycle.”

ADA in the news

According to CoinShares, a digital assets manager, institutional investors are considering alternative cryptocurrencies as the crypto market continues to see outflows for the ninth consecutive week.

In its most recent report on weekly digital asset fund flows, CoinShares reveals that institutional investors divested $5.1 million in crypto assets last week, which is considerably lower than the previous eight weeks.

“Digital asset investment products saw minor outflows totaling US$5.1m. The end of the week saw minor inflows following the news that one of the world’s largest asset managers has applied for a Bitcoin ETP (exchange-traded product) in the US, although these inflows were not enough to offset outflows seen earlier in the week.”

The notes continued and said the following:

“Consequently, a 9th week of outflows was recorded, with this run of outflows now totaling US$423m.”




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