A well-known crypto analyst has pinpointed the potential downside price target for Cardano (ADA), a smart contract platform, in case of another correction.
In a recent video update, crypto strategist Benjamin Cowen, with a substantial following of 849,000 YouTube subscribers, suggests that if the Federal Reserve does not reintroduce quantitative easing (QE), ADA may experience further decline.
“There’s a possibility that ADA could drop even lower, especially if it follows a similar pattern as the previous cycle… A 56% decrease would push the price below $0.60, which is where it bottomed out last time…
There’s also a chance it could revisit the $0.357 level, if Fed Chair Jerome Powell decides against QE and maintains a hands-off approach towards the crypto market, promising QE at a later stage. This scenario is also possible.”
Quantitative easing involves a central bank purchasing financial assets to boost the money supply and stimulate economic activity.
Cowen further explains that ADA’s technical indicators, including the 20-week simple moving average (SMA) and 21-week exponential moving average (EMA), suggest the potential for a significant downturn.
“Another aspect to consider is the bull market support band for ADA against Bitcoin – it briefly dropped below it in mid-2023 but closed the week near the 20-week SMA. Earlier this year, it was slightly above the 21-week EMA, so it’s worth monitoring that as well.
The 20-week SMA for ADA is approximately $0.56, while the 21-week EMA is around $0.67, indicating a possible price target of around $0.53.”
As of now, ADA is trading at $0.89, showing a 3% increase in the last 24 hours. On December 2nd, its value was $1.21.
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