It has been just revealed the fact that the crypto analyst Benjamin Cowen said that Cardano (ADA) is about to enter the depression phase. Check out the latest reports about this below.
ADA new prediction is out
According to a well-respected crypto analyst, Cardano (ADA), a smart contract platform, may be experiencing a “depression” phase that could result in a significant price drop. In a recent strategy session with his 786,000 YouTube followers, Benjamin Cowen, the analyst, indicates that Cardano, a competitor to Ethereum (ETH), is expected to experience a more profound correction period and reach a bear market low at much lower prices.
Cowen cites the example of the Nasdaq trends in 2002-2003 to illustrate that even after a considerable price decline and prolonged bear market, the price could still suddenly plummet significantly further after being turned down by the 50-week moving average.
“From the last ditch effort by the Bulls at the 50-week [moving average], the [Nasdaq] dropped 50%. What would that mean for ADA? From this level, $0.37, so not $0.26, which is what we are right now, but from $0.37 cents, what would a 49% to 50% drop look like? That would put ADA below $0.20.”
He continued and said the following:
“You could measure this in other ways as well. Instead of taking it from that point you could measure it from [an even lower low], and that was the penultimate low to the final low, [which] was a 27% drop. A 27% drop from this low would put [ADA] all the way down at $0.16, which is coincidentally also a somewhat important level, the level that ADA made it back to in August 2020.”
While not picking specific targets, Cowen outlines potential levels of $0.17, $0.12, or $0.07 for Cardano to find its bottom.
There are several significant levels to take note of in this situation. Firstly, there is the $0.11 level at the 2019 high, and secondly, there is the pre-pandemic high, which is significantly lower at around $0.07 or $0.08.
It’s important to acknowledge that if we were to enter the depression phase, it’s unclear how low the value will go.
However, the crucial thing to consider at this point is whether this is the beginning of the depression phase.
Although we’ve had several consecutive weeks of decline, there is still a possibility that the value could rise again for a short while, leading some people to make rash decisions. Nonetheless, there is a genuine risk at present, and people should be mindful of it.