Benjamin Cowen Looks Into Cardano (ADA) And Draws Key Levels

A top crypto market analyst, Benjamin Cowen, identifies a key price level that Cardano (ADA) would have to claim to spark another rally.

Cowen shared in a recent video update with his 721K YouTube subscribers that over the past year ADA has been hovering around $1.20 as both support and resistance.

According to the analyst it might need a little help from Bitcoin (BTC) to stage another ADA rally.

“If we come up to that level, the $1.20 threshold, I think that’s going to be a fairly big test for ADA.

It’s certainly not a test it has to battle by itself. Clearly, it’s going to be dependent on whether Bitcoin is successful in breaking its own bull market support band.”

Bull market support band is a technical indicator that combines 20-week simple moving average (SMA) and 21-week exponential moving average (EMA).

$45,000 to $46,000 is the next test area for Bitcoin, according to the analyst.

“If Bitcoin is successful in breaking through, then the argument would be that there’s a good chance that ADA would also likely be successful in breaking through.

However, if Bitcoin is brutally rejected from its bull market support band around $45k to $46k, the general expectation that I would have is that ADA would see some resistance here and rejection off of its own bull market support band.

When we’re at this phase of the market, we are fighting an uphill battle… This is the line in the sand.”

According to Cowen, when Bitcoin is priced below its bull market support band, altcoins usually don’t perform well against BTC.

“Bitcoin has been below it since the week of November 29th. If you go look at the Bitcoin/ADA evaluation since November 29th, it hasn’t really done anything that spectacular.

It was already below its own bull market support band, and since then it came down, went up to its bull market support band, got rejected off of it and then back down.

Perhaps we’re going up for another test of it at around 2,500 or 2,600 satoshis.”

At time of writing, ADA trades at $1.12 and BTC at $44,122.