Benjamin Cowen Looks Into Cardano And Maps Out Where ADA Could Go Next

A top crypto market analyst and trader, Benjamin Cowen, is looking into Cardano (ADA) and lists factors that could hold the digital asset back from igniting new rallies.

In a recent video session, Cowen shared with the 692K subscribers on his YouTube channel that Bitcoin (BTC) is the biggest limiting factor that could prevent ADA’s price rising to higher levels.

He explains that BTC is the controlling element that drives the market and when Bitcoin’s prices remain bearish, it is a challenge for any altcoin to rally.

About a week ago ADA was trading at $1.19, from where it climbed to $1.61 by Tuesday this week. At the time of writing ADA has corrected to $1.33 down 11.2% on the daily chart.

Cowen points out that the “bull market support band” for Cardano ranges between $1.64 and $1.81.

The bull market support band is a technical indicator that’s a combination of the 20-week simple moving average (SMA) and the 21-week exponential moving average (EMA).

According to the analyst:

“You can look at that ($1.81) as some short-term resistance.”

However, Cardano has several projects in the pipeline for 2022. Its developer, Input Output Hong Kong (IOHK) has oulined plans to ramp up the network this year. The plans include introducing sidechains, separate blockchains connected to the main chain to allow for the transfer of assets in between them.

Cowen, notes that traders should closely follow how successful these upcoming upgrades really are.

“Do they go off without a hitch? I would encourage people to temper their expectations in the short term.

Like anything, when you have something coming out, there are going to be bumps along the way.”