ADA Faces Warning as Benjamin Cowen Draws Parallel to 2019 Challenges

Benjamin Cowen, a well-known crypto analyst, is saying that Ethereum (ETH) competitor Cardano (ADA) is repeating a downward trend from 2019.

Cowen says in a new strategy session that Cardano hasn’t found a bottom yet by comparing the price action in 2023 to how the market was set up in the second half of 2019 when ADA kept finding new lows.

“The second half of 2019 was probably the hardest part of the cycle [for Cardano] because it wasn’t very exciting. You just watched the altcoin market slowly bleed out.

There were certainly a lot of pumps. I mean, no shortage of pumps. We had tons of them. This one right here [in 2019 from $0.035 to $0.050] was 41%. This one right here [from $0.041 to $0.58] was 40% as well. We had a lot of pumps like that and they ultimately just still got faded.”

Cowen says that ADA rallied in 2023 in the same way it did in 2019. This happened when the token made double top patterns and then fell below the bull market support band, which is the combination of the 20-week simple moving average (SMA) and the 21-week exponential moving average (EMA) in technical Analysis.

“And we saw the market capitulate to new lows [with ADA at $0.077], and even then it did not mark the low for ADA. Because we saw it rally and then fade [to $0.017]. I know it was not a popular view to talk about this. But so far it hasn’t been any different.

We saw ADA put in a low into 2022 [at $0.315] just like it did in 2018 [at $0.028]. We saw it pump in 2023 just like it did here in 2019. You got to two tops here (in 2019) just like we got over here (in 2023). We go below the bull market support band (in July 2019), just like it did (in June 2023). It has played out almost identically, almost identically as last cycle.”

Source: Benjamin Cowen/YouTube

Cowen is also watching how ADA does compared to Bitcoin (ADA/BTC).

He points out that ADA’s price bottomed out against Bitcoin in the third quarter of 2019 and stayed there for another six months before going up. He says this could happen again in the current market cycle for ADA.

“Remember ADA/Bitcoin did not bottom last cycle until Q3 of 2019. And even then, ADA/Bitcoin held those lows really for half a year before trending back up. At this point, we haven’t even convincingly found a level where ADA/Bitcoin is holding those lows.”

At the time of writing, ADA is selling for $0.30, which is 4.3% less than it was 24 hours ago.

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