Renowned crypto analyst and founder of Into The Cryptoverse, Benjamin Cowen, has shared his perspective on the price behavior of altcoins relative to Bitcoin (BTC), and in particular Cardano's native token, ADA.
Cardano (ADA) v. Bitcoin (BTC)
According to Cowen's analysis, ADA, having already lost 78.8% of its high against BTC, will continue to fall toward the lower end of dynamic support, which signifies a price of 800 SATS per ADA. This level, according to Cowen's outlook, dates back to 2018. It was then tested in the third quarter of 2019 and now, according to the price action, ADA is set to fall back toward it.
However, the analyst notes, finding a bottom against Bitcoin at this point would be a stroke of luck for the Cardano token. It is possible that the final support could be at 400 SATS per ADA, which represents a drop of another 69% from current values, Cowen concludes.
Survivorship bias
The analyst sees a similar picture for the other altcoins. They will all bleed against BTC for months to come, he says. Cowen says he has seen this happen before, when one's altcoins are down 90-95% against Bitcoin, and before you know it, you will think they are "holding up pretty well" the whole time.
Many such coins become relics of past cycles and do not rally in future ones as no one cares about them anymore, says the analyst.