Cardano (ADA), the much-touted Ethereum rival, is teetering on the brink of a troubling phase, which respected analyst Benjamin Cowen, who has a following of 786,000 on YouTube, predicts will end in a “depression.” This dismal forecast indicates that the price of the cryptocurrency darling may plunge to new lows, which may completely alter the market dynamics.
Cowen discusses his concerns about Cardano’s future in a recent strategy session that has sparked heated debate. To stress the dangers of a lengthy bear market, he persuasively compares the conditions of 2002 and 2003 on the Nasdaq. Despite a large price drop and a prolonged bearish cycle, the ADA price may be about to collapse unexpectedly, like a rapid market earthquake after rejection from the 50-week moving average.
The analytical skills of Cowen reveal, “From the 11th-hour struggle by the Bulls at the 50-week moving average, the Nasdaq plummeted by a staggering 50%.” Consider the repercussions of the ADA now. From its current price of $0.26, a 49% to 50% drop could send ADA’s value plunging below the frightening threshold of $0.20.
Cowen offers contrasting viewpoints, exploring many scenarios that could play out in this uncertain environment. By following ADA’s path from several vantage points, he paints a dramatic picture of the impending decline. Another way to examine this ordeal is by starting at a lower low, specifically the penultimate low before the final plummet, from which a 27% decrease would send ADA plunging to $0.16. It’s no coincidence that ADA was first drawn to this level in August 2020.
Although Cowen refrains from naming specific objectives, he confidently outlines possible floor prices of $0.17, $0.12, and $0.07. The foundation of his argument is carefully examining historical highs and lows. “At the 2019 high point, the $0.11 level is subtly weaved into this story. And then there’s the ghost of the peak before the pandemic, a distant land where one may get by on just $0.07 or $0.08. There must be complete openness: if this ‘depression’ phase occurs, estimating its depths will be impossible.
Cowen is trying to shed light on the significance of the current moment by issuing a rallying cry to the crypto community. In the context of several down weeks in a row, he allows for temporary recoveries that could persuade investors to take unnecessary risks. However, there is a sense of foreboding; a real danger lurks, one that Cowen thinks needs to be acknowledged.
As the cryptocurrency industry struggles to come to terms with this dire forecast, all eyes in the market are on Cardano, waiting for the developments that might completely alter its trajectory. Even in this murky environment, Cowen’s statements serve as a sobering reminder of the persistent volatility and the ever-changing narratives that propel the cryptocurrency market.