Benjamin Cowen Forecasts Cardano’s Downward Trend

In a recent YouTube video, prominent crypto analyst Benjamin Cowen states that Cardano (ADA) is nearing a critical point where it could experience a significant drop. Cowen emphasizes that Cardano has repeatedly tested a crucial support level on its weekly chart since December 2022, which generally indicates weakening strength as buyers lose momentum.

Cowen expresses his skepticism about Cardano maintaining its current position above the $0.240 support level for an extended period. He anticipates a substantial move for the cryptocurrency before the year ends, most likely in a downward direction.

According to a report by Mark Emem for The Daily Hodl, Cowen attributes Cardano’s potential decline to a decrease in global net liquidity. He presented a chart indicating that ADA’s price movements are closely aligned with fluctuations in global net liquidity. This liquidity is calculated based on the balance sheets of various central banks, including those from the United States, Canada, the European Central Bank, the UK, China, Japan, Australia, and New Zealand.

Discussing the future prospects for Cardano and other alternative cryptocurrencies, Cowen suggests that a resurgence in liquidity could eventually lead to a rebound. However, he cautions that such gains are unlikely to occur in the year leading up to a halving event, a period typically harsh for the altcoin market. Cowen emphasizes that Cardano’s performance is largely influenced by the availability of excess liquidity.

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As of the time of writing, $ADA is trading at around $0.247, down 0.34% in the past 24-hour period.

Back in late September, Dan Gambardello, the founder of Crypto Capital Venture, offered an in-depth analysis of Cardano (ADA). He highlighted that despite market volatility, Cardano had maintained its position among the top five cryptocurrencies and was well-prepared for future bullish trends. Gambardello also compared Cardano’s market cycles with those of Ethereum, noting similarities in their initial bull markets and subsequent bearish declines. On the technological side, he had pointed out that Cardano was not falling behind. He cited the introduction of Alonzo smart contracts and the rise of DeFi platforms like Sunday Swap as evidence of Cardano’s technological prowess.

Gambardello also touched upon the concept of Total Value Locked (TVL) in the cryptocurrency space. He argued that Cardano’s unique staking mechanism should be included in its TVL calculations, which would significantly elevate its ranking. Additionally, he speculated that even a conservative market cap estimate for Cardano could result in a $10 ADA price, although he clarified this was not a prediction. Lastly, he indicated that Cardano’s existing TVL, boosted by new DeFi platforms, showed its potential to compete with or even surpass Ethereum in the future.

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• Source: https://www.cryptoglobe.com/latest/2023/10/prominent-analyst-predicts-imminent-downward-shift-for-cardano-ada-key-details-and-timeline/