A widely followed crypto analyst identifies the downside price target for smart contract platform Cardano (ADA) if it undergoes another correction.
In a new video update, crypto strategist Benjamin Cowen tells his 849,000 YouTube subscribers that if the Federal Reserve does not bring back quantitative easing (QE), then ADA could continue to fall.
“There’s also a chance that (ADA) could go down, especially if it follows what it did last cycle… If it were to fall 56%, that would actually put you below 0, $60, which is exactly where it went last time…
There’s still a chance it could go back to the ($0.357 price level), because (Fed Chairman Jerome) Powell is just saying “no QE, keep playing in the sandbox and the cryptoverse and We’ll give you some QE a little later.” There is a chance of this happening.
Quantitative easing involves a government’s central bank purchasing financial assets to increase the money supply and stimulate economic activity.
Cowen goes on to say that ADA’s technical indicators, such as its 20-week simple moving average (SMA) and 21-week exponential moving average (EMA), are consistent with the theory that the crypto asset could be experiencing another significant drop.
“The other thing to consider is the bull market support band. The bull market support band for ADA towards Bitcoin – you can see that firstly it is below (at mid-2023), but it had a weekly close right around the 20 SMA weeks. (Earlier this year) it was just above the 21 week EMA, so I would keep an eye on that as well.
The 20-week SMA for ADA is around $0.56 (and) the 21-week EMA is around $0.67, so that would also be (a price of around 0.53 $).
ADA is trading at $0.89 at the time of writing, an increase of 3% over the past day. On December 2, its value was $1.21.
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