In a recent analysis, trader and analyst Benjamin Cowen expressed his bearish outlook for Cardano (ADA), suggesting that the altcoin’s downtrend may persist in the coming weeks. Cowen attributed this prediction to the declining total liquidity in the cryptocurrency market.
According to his analysis, if ADA’s current downtrend continues, its BTC pairing (ADA/BTC) could plummet to as low as 400 satoshis (0.000004 BTC). However, Cowen also speculated that ADA’s BTC pairing may consolidate between 800 to 1,200 satoshis in the upcoming weeks, given there is no significant sell pressure during this period.
The analyst pointed out that ADA has been losing ground against its major competitor, Ethereum (ETH), over the past few weeks. ADA/ETH has been in a downward trend, marked by lower lows and lower highs, and Cowen does not anticipate a break in this bearish trend anytime soon.
To confirm ADA’s potential exit from its negative medium-term trend, Cowen suggests that it needs to close a weekly candle above the 20-week EMA line and sustain a position above this technical indicator for several weeks thereafter. In terms of price, this level is around the $0.33-$0.34 range.
At present, ADA’s struggles continue, as it traded at $0.314, experiencing a 0.68% drop over the last 24 hours. This negative daily performance also turned ADA’s weekly performance negative, with a total weekly decline of -0.21%.
Furthermore, ADA weakened against the two market leaders, BTC and ETH, by 0.02% and 0.25%, respectively. As a result, 1 ADA was worth 0.00001056 BTC and 0.000168 ETH.
As the cryptocurrency market remains dynamic, investors and enthusiasts will closely monitor ADA’s performance to see if it can reverse its downtrend and regain its strength against its counterparts.
