A widely followed crypto analyst is identifying 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 doesn’t bring back quantitative easing (QE), then ADA could continue to slip.
“There’s also a chance [ADA] could go lower, especially if it follows what it did last cycle… If it were to drop 56%, that would actually put you below $0.60, which is right where it went last time…
There’s always a chance that it comes back down to [the $0.357 price level], because [Fed Chair Jerome] Powell just says ‘no QE, continue on playing in the sandbox and the cryptoverse and we’ll give you QE sometime later.’ There’s a chance that happens.”
Quantitative easing is when a government’s central bank purchases 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 lining up with the theory that the crypto asset could see another sizeable dip.
“The other thing to look at is the bull market support band. The bull market support band for ADA to Bitcoin – you can see that first of all, it wicked below it [in mid 2023] but it had a weekly close right around the 20-week SMA. [Earlier this year] it was just above the 21-week EMA, so I would also keep an eye on that.
The 20-week SMA for ADA is around $0.56 [and] the 21-week EMA is around $0.67, so that would also correspond to [a price tag of around $0.53].”
ADA is trading for $0.89 at time of writing, a 3% increase during the last day. On December 2nd, it was valued at $1.21.
