- Benjamin Cowen predicted in a tweet today that ADA may enter into a depression phase in the coming months.
- According to the analyst, ADA may also drop to 400 satoshis on the ADA/BTC chart.
- At press time, ADA was changing hands at $0.2591 following a 24-hour drop of 1.62%.
The cryptocurrency trader and analyst Benjamin Cowen warned in a tweet today that Cardano (ADA) may enter into a depression phase. To add credence to his bearish outlook, the analyst referenced the altcoin’s price movements leading up to the previous Bitcoin (BTC) halving, revealing that it had bottomed out 2 months prior to the last halving event.
Meanwhile, Cowen also predicted that ADA would dramatically weaken against the market leader Bitcoin (BTC) as well. In another post, he predicted that ADA/BTC could drop to 400 satoshis in the coming months.
At press time, CoinMarketCap indicated that ADA was changing hands at $0.2591. This was after the Ethereum-killer’s price dropped 1.62% over the past 24 hours. In addition to ADA’s daily loss, the altcoin was also down 1.70% for the week.
ADA’s price was trading below the $0.2645 resistance level at press time. If it is unable to close a daily candle above this price level in the coming 48 hours then the altcoin’s price will be at risk of testing the next key support level at $0.2375 within the coming week.
On the other hand, a daily close above $0.2645 within the next 2 days will open up the possibility of ADA’s price rising to the next barrier at $0.2920 in the following week. This bullish thesis may not be validated, however, as multiple technical indicators suggested that ADA’s price could drop in the next few days.
Firstly, the 9-day EMA line was positioned below the 20-day EMA line at press time. This signaled that short-term momentum was in favor of sellers, which may make it difficult for ADA’s price to close a daily candle above $0.2645.
Secondly, the daily RSI line crossed below the daily RSI SMA line over the past 48 hours. This latest technical flag suggested that sellers were stronger than buyers at press time. If the sell volume proves to be too overwhelming, then ADA’s price could drop to the aforementioned $0.2375 mark.
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