Cardano’s ADA token is currently experiencing a bear market, and according to crypto analyst Benjamin Cowen, this downturn may last until the end of 2023. Cowen suggests that ADA may need the rest of the year to find a bottom based on previous market cycles.
In addition to ADA/USD, Cowen also highlights the importance of monitoring ADA/BTC. He states that if the pair reaches approximately 0.000004 BTC ($0.11), it could signal a bottom for the smart contract protocol. However, he cautions that it is challenging to predict bottoms accurately. He believes it is more crucial to observe the ADA/BTC valuation and whether it can hold its lows, including potential future lows. If ADA/BTC can maintain the 0.000004 BTC level, it might start justifying its value. But currently, Cowen finds it difficult to justify ADA’s price, especially if it continues to decline against Bitcoin. Holding Bitcoin during this phase of the market cycle could potentially offer more attractive risk-adjusted returns.
Cardano, currently trading at $0.26, has been in a downtrend since August 2021 when it reached its all-time high of $3.09. Meanwhile, ADA/BTC is valued at 0.0000099 BTC ($0.26).
While Cardano faces challenges in the current market, it’s worth noting that cryptocurrency markets can be highly volatile and subject to rapid fluctuations. The future performance of ADA will depend on various factors, including market sentiment, regulatory developments, and technological advancements.
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It’s essential for investors and traders to stay informed about the latest news and trends in the crypto market. Subscribing to reputable sources of information can provide valuable insights into market movements and potential investment opportunities.
In addition to market analysis, it’s beneficial to keep an eye on price action. Monitoring price charts and technical indicators can help identify trends, support, and resistance levels, as well as potential buying or selling opportunities.
Connect with the cryptocurrency community on social media platforms like Twitter, Facebook, or Telegram. These communities often share insights, news updates, and discuss market trends. Following reliable voices in the crypto space can provide a broader perspective and help stay informed about significant developments.
In conclusion, according to Benjamin Cowen, Cardano’s ADA may need the rest of 2023 to reach a bottom in its bear market cycle. Monitoring the ADA/BTC valuation and its ability to hold lows, especially around the 0.000004 BTC level, could provide insights into potential price stabilization. However, it’s important to note that the cryptocurrency market is highly volatile, and investing or trading involves risks. Conducting thorough research, understanding market dynamics, and staying informed can help make informed investment decisions.
