Cryptocurrency markets are notoriously volatile, and Cardano (ADA) is no exception. Benjamin Cowen, a well-known crypto analyst, recently shared his insights on Twitter regarding ADA’s current market trends. His analysis touches on various aspects, from ADA’s ROI to its potential future in the BTC market. Here’s a breakdown of Cowen’s observations.
What you'll learn 👉
Entering the Depression Phase
According to Cowen, ADA is likely entering a “depression phase,” similar to its previous market cycle. He points out that ADA bottomed out just two months before Bitcoin’s halving event during its last cycle. The coin also experienced a downward trend in the second half of 2019, even before the pandemic hit.
Cowen’s analysis shows that ADA has been experiencing diminishing losses as time progresses. He suggests that if ADA follows the same pattern as the last cycle, it might take about three more months before hitting its lowest point. However, Cowen also humorously notes that he has “no idea where the bottom is,” indicating the unpredictability of the crypto market.
A few months ago, Cowen predicted that the ADA/BTC ratio would reach 800 satoshis by summer 2023 and stabilize in the 800-1200 sat range. However, his recent tweets indicate a change in this outlook. Cowen expects the ADA/BTC ratio to plunge to 400 satoshis in the coming months, mirroring its behavior in the last cycle.
Year-To-Date ROI Comparison
Cowen also compares ADA’s Year-To-Date (YTD) Return on Investment (ROI) with its performance in 2019. He believes that the ADA will more or less follow the general path it took in 2019, although not exactly. This suggests that investors should brace for similar market behavior, albeit with some variations.
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Show more +In his most recent tweet, Cowen overlays ADA’s performance with net liquidity, although he doesn’t elaborate much on this aspect. Net liquidity can be a crucial factor in determining a cryptocurrency’s stability and potential for growth, and it will be interesting to see how this plays out for ADA.
Benjamin Cowen’s analysis provides valuable insights into ADA’s current market situation and potential future. However, it’s essential to remember that the cryptocurrency market is highly volatile and unpredictable.
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