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Cryptocurrency analyst Benjamin Cowen has cautioned investors that Cardano (ADA), currently ranked 8th on the list of the top 10 altcoins by market capitalization, may be repeating its performance from the second half of 2019. Cowen believes that Cardano could experience a similar decline to the one it faced during that period.
Predicting a Collapse for ADA, Similar to 2019
Cowen argues that Cardano’s native asset, ADA, has not yet hit bottom, comparing the price movements seen throughout the year to the market structure in 2019, where it continued to find new lows. He emphasizes that the second half of 2019 was particularly challenging for Cardano, as it slowly lost value and eventually collapsed after a few weak rallies.
The analyst highlights that ADA has been exhibiting price movements similar to those in 2019, forming a double top pattern before falling below the support band represented by the 20-week Simple Moving Average (SMA) and the 21-week Exponential Moving Average (EMA).
In 2019, ADA was believed to have hit rock bottom at $0.077, but eventually dropped to $0.017, marking the true bottom formation. Cowen suggests that a similar price pattern is currently forming, and expects the price to decline even further.
The Analyst’s Focus on ADA/BTC Pair
Cowen is also closely monitoring ADA’s price movements against Bitcoin (ADA/BTC). He points out that ADA did not hit bottom against Bitcoin until the third quarter of 2019, remaining near the bottom level for six months before rising. The analyst suggests that a similar scenario could unfold for ADA in the current market cycle.
Cowen’s analysis has increased concerns among investors who worry about further downward movements in ADA’s price. The prediction that history may repeat itself indicates that ADA may reach lower levels before making a strong recovery.
