Crypto analyst Benjamin Cowen is predicting a potential price drop for Cardano (ADA) if the market takes another downturn. He shared his analysis with his over 800,000 YouTube subscribers.
The Fed’s Role and ADA’s Potential Dip
Cowen’s prediction hinges on the Federal Reserve’s actions. He suggests that if the Fed doesn’t restart quantitative easing (QE) – a policy of injecting money into the economy – ADA could fall significantly. He pointed out that a 56% drop from the current price would push ADA below $0.60, a level it hit previously. He also mentioned a possible drop to $0.357, depending on the Fed’s decisions.
Technical Indicators Point to a Potential Correction
Cowen also looked at Cardano’s technical indicators, including its 20-week simple moving average (SMA) and 21-week exponential moving average (EMA). These indicators, he says, suggest a possible substantial price decrease. He specifically highlighted the bull market support band for ADA relative to Bitcoin, noting its recent breaches and potential implications. He estimates the 20-week SMA to be around $0.56 and the 21-week EMA around $0.67, potentially leading to a price around $0.53.
Current Price and Recent Performance
At the time of writing, ADA is trading at $0.89, up 3% in the last day. However, it’s worth noting that it was at $1.21 on December 2nd.
Disclaimer: This information is for general knowledge and discussion only and does not constitute financial advice. Always conduct your own research before making any investment decisions.
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