Cardano (ADA), a smart contract platform and competitor to Ethereum (ETH), may be entering a “depression” phase according to crypto analyst Benjamin Cowen. In a recent strategy session, Cowen suggests that Cardano could experience a deeper correction period and reach lower price levels during its bear market.
Cowen draws a comparison between Cardano and the Nasdaq’s trend in 2002-2003 to illustrate his point. He explains that even after a significant price drop and a prolonged bear market, the price of Cardano could still plummet further after being rejected from the 50-week moving average.
Using this analogy, Cowen speculates that if Cardano were to drop by 50% from its current level of $0.26, it could potentially reach a price below $0.20. Furthermore, he also considers a 27% drop from a previous low, which would put Cardano at around $0.16. These price levels of $0.20 and $0.16 are important support levels that Cardano reached in the past.
Although Cowen does not provide specific targets, he mentions other significant levels, such as $0.17, $0.12, or even $0.07, where Cardano could potentially find its bottom during the depression phase.
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Cowen emphasizes that he is uncertain about how low Cardano’s price could go if it enters the depression phase. He acknowledges the possibility of a short-term rebound before a further decline. However, he warns investors to be aware of the real risk of a deeper correction.
It is important to note that Cowen’s analysis is based on his own interpretation of the market trends and indicators. Market conditions can change rapidly, and investors should conduct their own research and analysis before making any investment decisions.
The Cardano community should closely monitor the price movements and market developments to assess the validity of Cowen’s analysis. It is always advisable to remain informed and cautious when investing in the highly volatile cryptocurrency market.
In conclusion, according to crypto analyst Benjamin Cowen, Cardano may be entering a “depression” phase that could result in a significant price dip. Cowen suggests potential price levels such as $0.20, $0.16, and even lower, but emphasizes that the actual bottom is uncertain. Investors should stay updated on market conditions and conduct their own research before making any investment decisions in Cardano or any other cryptocurrency.
