A widely followed crypto analyst identifies the downside price target for smart contract platform Cardano (ADA) if it undergoes another correction.
In a new video update, crypto strategist Benjamin Cowen tells His 849,000 YouTube subscribers said that if the Federal Reserve doesn’t bring back quantitative easing (QE), the ADA could continue to slide.
“There is also a chance [ADA] could go even lower, especially if it did the same as the last cycle… If it were to drop 56% you would essentially be below $0.60, which is exactly where it went last time…
There is always a chance that it will come back [the $0.357 price level]because [Fed Chair Jerome] Powell just says, “no QE, keep playing in the sandbox and the cryptoverse and we’ll give you QE a while later.” There is a chance that will happen.”
Quantitative easing occurs when a government’s central bank purchases financial assets to increase the money supply and stimulate economic activity.
Cowen further says that ADA’s technical indicators, such as the 20-week simple moving average (SMA) and 21-week exponential moving average (EMA), are in line with the theory that the crypto asset could see another significant dip .
“The other thing we need to look at is the bull market support band. The bull market support band for ADA to Bitcoin – you can see that first and foremost, below that it’s bad [in mid 2023] but it had a weekly close around the 20-week SMA. [Earlier this year] it was just above the 21 week EMA, so I would keep an eye on that too.
The 20-week SMA for ADA is approximately $0.56 [and] the 21-week EMA is around $0.67, so that would match as well [a price tag of around $0.53].”
ADA is trading at $0.89 at the time of writing, up 3% over the past day. On December 2, it was valued at $1.21.
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