Analyst Benjamin Cowen predicts that Cardano (ADA) is likely to experience another drop against Bitcoin (ADA/BTC) before the end of 2024.
Cowen, who has a following of 889,100 on the social media platform X, points out that historically, ADA has fluctuated against BTC between 400 and 4,000 satoshis (sats), with final declines typically occurring at the end of the halving year.
He also notes that the current restrictive monetary policy and the strengthening US dollar are bearish conditions for risk assets like crypto, suggesting that ADA/BTC may see one more drop before the year ends.
“I think ADA/BTC will experience one more drop before the end of the year and then start rising in 2025.”
Comparing some stats:
Nov 2020 low: 583 sats
Nov 2020 high: 995 sats
Dec 2020 low: 503 sats
Nov 2024 low: 470 sats
Nov 2024 high: 903 sats (so far)
Dec 2024 low: ???
“With quantitative tightening (QT) ongoing and the US dollar index (DXY) rallying, I believe we cannot rule out another drop in ADA/BTC before the end of the year.”
Cowen holds a similar view on altcoins in general, suggesting that they could weaken further based on the TOTAL3-USDT chart and the struggle to breach a level reached in late 2020 against Bitcoin.
“BTC dominance (BTC.D) dropping to 60% is a possibility, but ALT/BTC pairs are still far from their historic lows. With ongoing QT, rising DXY and yields, and historical trends of BTC.D increasing in December of halving years, the top for dominance might not be in yet.”
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