Benjamin Cowen, a well-known crypto analyst, recently examined the price action of Cardano’s native asset ADA. The crypto analyst discusses Cardano’s (ADA) price movement. The fourth-largest cryptocurrency’s future is explained by Cowen as During the bull market, he expects the altcoin’s USD value to rise.
He says that From March 13th, 2020, it is the normalized ROI (return on investment) of ADA and many other cryptocurrencies. Now, this may seem to punish those who didn’t crash as hard, but it also highlights those who have had a higher ROI since the crash on a daily basis. As we can see, ADA has been in the lead for quite some time. It’s a racehorse, after all. It’s one of the racehorses we’ve got for this season.
Out of the coins he has been monitoring, it was in first place here (July 2020). For a while (February 2021), it was first place… VeChain (VET) dumped even harder during this dump than ADA has so far, and ADA has thus regained the lead.
Cowen seems to be monitoring ADA’s current performance amidst the ongoing market correction and says that Cardano is bound to stay above the key levels to stay in the race.
ADA would have to actually drop another 30% or so to get back to the 20-week SMA (simple moving average). Now if you’re curious, the 20-week SMA now corresponds to $1.08 and the 21-week EMA (exponential moving average) corresponds to $1.12. So that would be the bull market support band.”
Cowen says Cardano is showing signs of strength against Bitcoin (ADA/BTC) as the rest of the altcoin market succumbs to the sell-off.
ADA is one of the few coins that is holding up against Bitcoin fairly well. Many coins have suffered large losses as compared to ADA. ADA has not done so. It has dipped a little. It’s actually down about 22% against Bitcoin, as you can see. There are a lot of coins that would appreciate it if they were just 22% [lower] than Bitcoin.
I am going to be skeptical that ADA can put in a new all-time high until Bitcoin figures out what it’s doing. Because with this type of instability in the market with Bitcoin, it is going to make it very challenging for enough confidence to resume for Cardano in the short term for it to put in decisively a new all-time high and go to like $2.50.”
At the time of writing Cardano was trading at $1.47.