Benjamin Cowen: Smart Contracts Could Push Cardano ADA to New ATH
According to Benjamin Cowen a popular crypto analyst and trader the launch of smart contracts on Cardano could drive the value of its native token ADA to a new all-time high.
In a recent video, the trader lays out his thoughts on how ADA could follow the footsteps of Ethereum (ETH), which according to the analyst has been doing well due to its various applications in many protocols.
“A lot of ETH is getting eaten up on all these different platforms, of people that are actually utilizing Ether: NFTs (non-fungible tokens), DeFi (decentralized finance). There’s just so many various applications right now, so many dApps that people are using for Ether, and arguably that’s contributed to the high market capitalization.
Cardano does not really have that effect yet. It does not have that same level of network effect now. Obviously, we hope it can grow into that. None of us, I don’t think, are claiming that Cardano’s ecosystem is currently bigger than Ethereum’s, but I do think that Cardano will grow with time, and I do think that as more utility is actually built out on the platform, that this will have a positive impact on the price.”
To move up to the mid-range target level, Cowen is looking at ADA against its ETH pair, which has still quite a lot to go up before reaching its all-time high.
“For ADA to reach a new all-time high against Ethereum, it would need to rally… another 68% move or so. A 68% move by ADA for a constant Ether would actually put it closer to $4.50. Now, do I anticipate ADA going to $4.50 this month or next month? Probably not, to be completely honest, but I do think we will eventually make it there.”
The analyst explains that Cardano is still in a large re-accumulation phase between $1 and $3. But it break this level, Cohen predicts the smart contract platform to spark on a massive rally.
“Whatever this ends up being, I’m just speculating that it’s a long reaccumulation window, and that we will ultimately blast out of it to a new milestone.”
If Cardano is to follow this path, the trader predicts ADA to rise as high as $7, representing 183% gains from its current price of $2.47. ADA’s price dropped about 10% since the announcement Sunday evening to an intraday low of $2.3.
