In a major turn of events for Cardano (ADA), the seventh-largest cryptocurrency in terms of market capitalization, renowned analyst Benjamin Cowen has provided insights that have sparked debate within the crypto community. ADA, which functions as a platform for smart contracts, is currently at a critical crossroads, maneuvering through both regulatory hurdles and prospects for near-term recovery.
While Cowen’s assessment has a bearish tone, it has prompted a closer look into the possible direction Cardano could take.
Cowen’s projection of the ‘depression phase’
Benjamin Cowen, a respected figure in the crypto landscape with a significant YouTube following, presents a thought-provoking perspective. He expects Cardano to enter a “depression” phase, potentially paving the way for a notable price drop.
Drawing parallels to historical market trends, Cowen suggests that ADA’s current situation bears similarities to the patterns observed in the Nasdaq market during 2002-2003. This parallel leads him to consider the possibility of a more profound correction for ADA, similar to the substantial declines we’ve seen in that particular era.
Read more: Cardano Price Analysis: Here’s how buyers tease a sharp move in ADA price!
Compare historical trends
Cowen highlights an important observation: Even after experiencing substantial price declines and enduring a prolonged bear market, the price of ADA could still witness a sharp decline. Citing the history of the Nasdaq, where a 50% drop followed strenuous bulls’ efforts around the 50-week moving average, he applies this precedent to ADA. With the current price of ADA hovering around USD 0.26, Cowen suggests that a 49% to 50% drop could push ADA below USD 0.20.
However, he also presents alternative scenarios, projecting potential bottom levels at $0.17, $0.12, $0.07 or even lower.
What does the community have to say?
While Cowen’s analysis sparks speculation about the future of ADA, it remains critical to acknowledge the divergent viewpoints within the crypto community.
Respected crypto expert Gambardello offers an alternative perspective, suggesting that Cardano may be leaving the “depression” phase behind and focusing instead on accumulation and preparations for the coming bull market.
These differing opinions highlight the complexity and uncertainty surrounding ADA’s trajectory.
Also Read: Is Cardano Under the SEC’s Radar? Rumor of de-listing looms – Charles Hoskinson clears the air
Cardano’s Potential
Cowen’s cautionary stance underscores the unpredictable nature of the crypto markets, raising pertinent questions about ADA’s path forward. As Cardano continues to bolster its robust platform, optimism about its future potential remains. The ongoing discussions within the crypto community reflect the depth of analysis and different interpretations.
Looking ahead, experts predict that Cardano could trade in a range of USD 0.33 to USD 0.37 in December 2023.
