Cryptocurrency analyst Benjamin Cowen signals a potential new drop in Cardano 
$0.864808 (ADA) prices. Cowen noted that ADA could remain under pressure if the Federal Reserve does not renew its quantitative easing (QE) policies. Currently, ADA is trading at around $0.89, with the analyst projecting that the price may decline further.
Impact of QE on Cryptocurrency Markets
Cowen emphasized that altcoins like ADA could face price pressure as long as the Federal Reserve does not implement quantitative easing. Quantitative easing is known as a strategy where central banks increase the money supply by purchasing financial assets to provide market liquidity. Cowen remarked:
“Federal Reserve Chairman Jerome Powell’s statement of ‘no QE, the market will proceed on its own’ could significantly impact ADA’s price. There is a possibility that ADA’s price could decline to $0.357.”
Technical Indicators Point to Downside Risk in ADA
Cowen highlighted critical levels in ADA’s technical analysis. The 20-week simple moving average (SMA) and the 21-week exponential moving average (EMA) support ADA’s current movements. The analyst stated that these indicators reinforce the projection that ADA’s price could fall further.
“ADA experienced a decrease of up to 56% in its last cycle. If this happens again, ADA’s price could drop below $0.60,” Cowen emphasized, adding that ADA’s long-term recovery depends on central bank policies.
Although ADA saw a brief recovery recently, it remains far from the $1.21 level reached on December 2. Technical levels set by analysts and market conditions suggest that price movements may trend sideways. Investors are advised to pay attention to these critical levels to make strategic decisions.
Future movements of the ADA price may continue to fluctuate based on the Federal Reserve’s policies. As analysts stress, carefully monitoring market conditions and managing risks is crucial for investors.
