Analyst Predicts Downtrend for Altcoin
In his latest analysis for Cardano (ADA), trader and analyst Benjamin Cowen predicts that the altcoin may continue to drop in the coming weeks. This bearish outlook primarily stems from his observation that the total liquidity for the cryptocurrency market continues to decline.
Projected Drop in ADA/BTC
According to Cowen’s forecast, the current downtrend of ADA, if sustained, could push the ADA/BTC pairing down to as low as 400 satoshis (0.000004 BTC). Without an overwhelming amount of sell pressure during this period, ADA’s BTC pairing may continue to consolidate between 800 to 1,200 satoshis in the coming weeks.
ADA/BTC Daily Chart Analysis
Daily chart for ADA/BTC (Source: TradingView)
Weakening of ADA against ETH
In recent weeks, Cowen has also noticed a weakening of ADA against its biggest competitor, Ethereum (ETH). He noted that the ADA/ETH pairing has been on a downward trend, printing lower lows as well as lower highs. Furthermore, he does not anticipate a break of this bearish trend in the near future.
ADA/ETH Weekly Chart Analysis
Weekly chart for ADA/ETH (Source: TradingView)
Conditions for ADA to Exit Negative Medium-Term Trend
As per Cowen’s speculation, a confirmation of ADA exiting its negative medium-term trend will be when it:
- Closes a weekly candle above the 20-week EMA line
- Maintains a position above this technical indicator for multiple weeks thereafter
From a price perspective, this would be around the $0.33-$0.34 area.
ADA/USD Weekly Chart Analysis
Weekly chart for ADA/USD (Source: TradingView)
ADA’s Current Standing
As of press time:
- CoinMarketCap indicated that ADA’s woes continued over the past 24 hours with the cryptocurrency trading at $0.314, a drop of 0.68%
- ADA’s weekly performance flipped into the red with its total weekly performance down to -0.21%
Performance Against Market Leaders
- 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
Disclaimer
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