Benjamin Cowen, a well-known market analyst and PhD in engineering, has given a warning to cryptocurrency investors, especially those interested in Cardano (ADA), in a key market study. According to a recent tweet by Cowen, the value of ADA in terms of Bitcoin (BTC) is falling and may eventually reach as little as 400 satoshis.
The basis for Cowen’s caution is a thorough examination of ADA’s price chart that identifies a worrying pattern. Cardano token experienced a retest after breaching a critical trend line before moving into an accumulation phase beneath.
This buildup, nevertheless, was only temporary, since ADA began to depart this phase and lost significant support levels in the process. Cowen estimates that ADA’s value will decrease by at least 50% from its present price of 890 satoshis.
https://x.com/intocryptoverse/status/1713978465555259683?s=20
This forecast is not brand-new; at least since the end of March of this year, Cowen has been predicting a fall in the price of ADA in comparison to Bitcoin. His study suggests that the Cardano coin will reverse course and return to the 400-satoshi level, which is similar to the third quarter of 2019.
Dominance matters
Cardano is only the beginning of Cowen’s dismal outlook; until the summer of 2024, he predicts a generally bleak phase for the whole cryptocurrency market, particularly altcoins. He explains this pessimism as a result of a loss of liquidity from financial markets, including the crypto industry.
A ray of hope for a market recovery is provided by Cowen, who does make a prospective shift if the U.S. Federal Reserve changes its monetary policy in favour of quantitative easing (QE).
