In a recent tweet, Benjamin Cowen, the CEO and Founder of ITC_Crypto, has raised concerns about the potential for Cardano’s ADA cryptocurrency to enter a depression phase. Cowen pointed out a historical pattern, noting that ADA reached its bottom point during the previous cycle just two months before the halving event. He further highlighted that ADA’s performance in the second half of 2019 showed a downward trend even before the onset of the pandemic.
Cowen presented a comparison of the Return on Investment (ROI) for ADA after the peak of both the last and current cycles. This comparison indicated that ADA has been encountering diminishing losses over time. Extrapolating from the past, Cowen suggested that if the current cycle follows a similar timeline, ADA might have approximately three more months before reaching its potential lows.
Regarding technical analysis, Cowen admitted uncertainty about the accuracy of his chart predictions, cautioning against attempting to identify specific patterns. He indicated that his initial estimations for ADA’s performance against Bitcoin (ADA/BTC) projected a movement to 800 satoshis by the summer of 2023, residing within the 800-1200 satoshi range.
However, he has now revised his expectations, anticipating a drop to 400 satoshis in the upcoming months, mirroring a pattern observed during the previous cycle.
In light of the year-to-date (YTD) Return on Investment for ADA compared to 2019, Cowen suggested that ADA might potentially follow a trajectory similar to that of 2019, although not necessarily an exact replica. Additionally, Cowen included an overlay of ADA’s price movement with net liquidity, though the available information did not elaborate on specific details about this overlay.
Cardano Price Analysis
The current trading price of Cardano (ADA) stands at $0.260291. Within this one-day timeframe, ADA has experienced a decrease of 0.16%, and over the past seven days, it is down by 2.91%. An analysis of the prevailing market sentiment surrounding Cardano’s price prediction indicates a current inclination towards bearishness. Concurrently, the Fear & Greed Index, a prominent metric gauging market sentiment, registers a value of 38, indicating a prevailing sense of fear among investors.
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