Benjamin Cowen Predicts A Break Out For Cardano (ADA), Here’s When
Benjamin Cowen, a top cryptocurrency analyst and trader, is looking into Cardano and updates his outlook on ADA, as the wider crypto market is on the downtrend.
In a recent video, Cowen explains that ADA has entered a large trading range. However, he believes that the smart contract platform will stage a rally within the next four months, based on historic performance trends.
“We’ve at least reached the window where I believe we’ll see ADA ultimately breakout to the upside, starting from mid-November until sometime in late March is what I’m dubiously speculating on, based on some prior trends that we’ve seen.”
According to the analyst Cardano has slipped below the bull market support band – a combination of the 20-week simple moving average (SMA) and the 21-week exponential moving average (EMA). The drop is likely due to Bitcoin’s recent correction that dragged the largest crypto asset from $69K to below $56K, taking much of the crypto markets with it, Cowen says.
Cardano against Bitcoin (ADA/BTC) also seems to be going down, which would mean that BTC is set to outperform ADA, the analyst points out. But, he there is one catalyst that could break that a trend: smart contract activity on Cardano.
“The one thing that I could see causing this not to bleed is if we really start to see the Cardano ecosystem develop. If we actually see smart contracts launching and people using the ecosystem, then I’d be a little bit more optimistic in the short term.”
Cardano’s uneventful sideways trading is nothing unusual for crypto markets and Cowen points out that in previous cycles, coins like Ethereum (ETH) also went sideways for painfully long time before making huge upward moves.
“I understand that we can go through these boring times, the ‘Why doesn’t ADA do anything?’ phase but look, we saw the same thing with Ethereum last market cycle. We saw phases where it just basically went sideways for a year. Essentially, that’s what ADA’s doing. It’s been going sideways for the past 38 weeks or so.
This isn’t new. We’ve seen this with other projects. If you don’t believe me, just look at Ethereum. You can see last market cycle, there are definitely phases where Etheruem more or less just went sideways for upwards of a year.”
