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In a significant market analysis, prominent market expert and PhD in Engineering Benjamin Cowen has issued a warning to crypto investors, particularly those eyeing Cardano (ADA). According to Cowen's recent tweet, ADA's value in terms of Bitcoin (BTC) is on a downward spiral, potentially plummeting to as low as 400 satoshis.
Cowen's warning is grounded in a detailed analysis of ADA's price chart, revealing a concerning trend. After breaking a crucial trend line, Cardano token underwent a retest before entering a phase of accumulation underneath.
However, this accumulation was short-lived as ADA started to exit this phase, losing key support levels along the way. Currently priced at 890 satoshis per ADA, Cowen anticipates ADA's value to drop by at least 50% compared to its current level.
This prediction is not new; Cowen has been indicating a decline in ADA's price relative to Bitcoin since at least the end of March this year. His analysis points to Cardano token retracing its steps back to the 400 satoshi range, reminiscent of the third quarter of 2019.
Dominance matters
Cowen's bearish perspective does not stop at Cardano; he foresees a generally gloomy period for the entire cryptocurrency market, especially altcoins, until the summer of 2024. He attributes this pessimism to a liquidity drain from financial markets, including the crypto sphere.
However, Cowen does suggest a potential shift if the U.S. Federal Reserve alters its monetary policy toward quantitative easing (QE), offering a glimmer of hope for a market recovery.
Tomiwabold Olajide
