- Benjamin Cowen, a prominent crypto analyst, warns that Cardano (ADA) appears to be repeating a bearish pattern seen in 2019.
- According to Cowen, ADA is yet to find a bottom in its price action, as it continues to form ‘double top’ patterns and dips below the bull market support band, similar to its behavior in 2019.
Renowned cryptocurrency analyst Benjamin Cowen issues a warning about Cardano (ADA), a prominent competitor to Ethereum (ETH). In a recent strategy session, Cowen argued that Cardano’s 2023 price actions resemble the bearish trend witnessed in the latter half of 2019 when ADA consistently plunged to new lows.
A Mirror Image of 2019?
Cowen uses historical data to deduce a potential outcome, painting a somewhat gloomy picture for ADA. The second half of 2019 was a tough period for Cardano, with the altcoin market slowly deflating. While there were spurts of growth, with spikes up to 41%, these were eventually eclipsed by downward trends.
According to Cowen, Cardano’s behavior in 2023 mirrors its past, forming ‘double top’ patterns and consistently dipping below the bull market support band. This term refers to the convergence of the 20-week Simple Moving Average (SMA) and the 21-week Exponential Moving Average (EMA) – key indicators in technical analysis.
Reflecting on this pattern, Cowen pointed out that even when ADA hit new lows at $0.077, it did not signal a bottom, as ADA rallied briefly before fading to $0.017. This uncanny resemblance between Cardano’s current and past trends is causing Cowen to predict a continuation of this bearish cycle.
Cowen also scrutinized ADA’s performance against Bitcoin (ADA/BTC). The analyst noted that ADA didn’t reach its bottom against Bitcoin until the third quarter of 2019. Even then, ADA/BTC held its lows for another six months before rallying. This, Cowen suggested, could also be the case in the present market cycle.
At the time of the report, ADA was trading at $0.30, marking a 4.3% drop in the last 24 hours. Cowen’s analysis and predictions, although not certain, suggest that ADA may not have found its bottom in the current cycle, and further downward trends could be expected.