Crypto Analyst: Cardano Potentially Enters Deep Correction Phase

Cardano crypto assets. (Photo; Doc. Coingen)

JAKARTA - A leading analyst in the crypto world gave his views on the Cardano (ADA) smart contract platform, stating that ADA is most likely entering a "depression" phase that could potentially lead to a significant price drop.

Recently, crypto analyst Benjamin Cowen spoke to its subscribers on YouTube channels totaling 786.000 people. He said that ADA, as a major competitor to Ethereum (ETH), might face a deeper period of correction and reach its lowest point in a bearish trend at a much lower price.

Cowen made a comparison between the ADA movement and the Nasdaq trend in 2002-2003 to provide illustrations. In his analysis, he stressed that even after a significant price drop and a sustainable bearish market, prices could suddenly experience a further dramatic decline after being rejected from the 50-week movement average (MA 50).

"From the last trial of the Bulls on the MA 50, Nasdaq decreased 50%. How does this apply to ADA? From the current level, which is 0.26 US dollars (Rp 3,900), if we consider a decrease of between 49% and 50%, then ADA can be below 0.20 US dollars (Rp. 3,000)," Cowen said.

You can also see from another point of view. Instead of measuring from that point, you can measure it from the previous low, which is a decrease of about 27%. A 27% drop from the current low will make ADA reach 0.16 US dollars (Rp2,400), which happens to be also an important level and was achieved by ADA in August 2020, "he added.

Although it did not set a definite pricing target, Cowen showed a possible level of 0.17 US dollars (Rp. 2,500), 0.12 US dollars (Rp1,800), or 0.07 US dollars (Rp1,000) as the potential low point for Cardano.

"There are also several other important levels, including the level of 0.11 US dollars (Rp1,600s) which is the highest level in 2019, as well as the level of around 0.07 US dollars (Rp1,070) or 0.08 US dollars (Rp1,223) which was the highest level before the pandemic. I would sincerely warn if we really entered this depression phase. I don't know the extent of the decline, I don't know at all... Cohen's comment.

What's more important is to consider whether this is the beginning of the depression phase. We've just had a few weeks of successive red performance. While there is potential to recover in the next few weeks, we also have to be aware of this real risk. It's important for everyone to be aware of this situation now, "he explained.