Cardano’s (ADA) bear market likely has a ways to go before bottoming out, according to closely followed crypto analyst Benjamin Cowen.
In a new strategy session, Cowen says that based on past market cycles, ADA may need the rest of 2023 to find a bottom.
Cowen also thinks that ADA/BTC is also worth keeping an eye on, and says that the pair reaching approximately the 0.000004 BTC ($0.11) level could signal a bottom for the smart contract protocol.
“We know we’ve just put in a new low. Again, based on the [last cycle], we know that it can last for another five months or something.
So that’s something to think about. It’s really hard calling bottoms.
I think it’s more important to look at the ADA/BTC valuation and to see if it holds its lows, maybe future lows. Let’s say, if it goes to 400 satoshis (0.000004 BTC), if it can hold those levels, then it might start to justify it. But right now, in my opinion, it’s a little bit harder to justify it.
Not to say that it can’t bounce back up on its USD pair if Bitcoin goes back up, we know that it probably would, but the problem is that, again, if it’s bleeding against Bitcoin, no matter if Bitcoin is going up or down, then the risk-adjusted returns are not as attractive as just holding Bitcoin during this phase of the market cycle.”
Cardano is currently trading for $0.26 and has been trending down since August of 2021 when it reached its all-time high of $3.09. Meanwhile, the ADA/BTC pair is worth 0.0000099 BTC ($0.26).
I
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxFeatured Image: Shutterstock/Dotted Yeti