Cardano Could Experience a Steep Move Downward, Warns Analyst Benjamin Cowen
Crypto strategist Benjamin Cowen is cautioning his followers that Cardano (ADA) is on the brink of breaking below a crucial support level on the weekly chart. Despite retesting this level multiple times since December 2022, the support appears to be weakening.
Cowen believes that Cardano will not likely remain above the $0.240 support level for the rest of the year and predicts a decisive downward move in the near future.
Falling Net Liquidity Could Lead to Cardano’s Plummet
Cowen suggests that Cardano’s potential decline is linked to a decrease in net liquidity. He presents a chart demonstrating how ADA’s performance is closely tied to global net liquidity. As net liquidity decreases due to factors such as central bank balance sheets and reverse repos, altcoins like Cardano tend to follow suit.
Altcoin Market Expected to Rebound with Increased Liquidity
Cowen explains that once liquidity returns, altcoins may experience a reversal and move higher. However, he emphasizes that these gains typically occur after the pre-halving year and not during it. Therefore, in the current market conditions, altcoins may struggle.
Cardano’s Value at Present
As of now, ADA is valued at $0.246.
Hot Take: Cardano’s Potential Downside Move
According to crypto analyst Benjamin Cowen, Cardano could be on the verge of making a significant downward move. The repeated testing of a key support level on the weekly chart has weakened its strength, suggesting an imminent decline. Cowen attributes this potential plunge to falling net liquidity, explaining that Cardano’s performance is closely tied to global liquidity trends. He notes that altcoins like Cardano tend to rebound when liquidity returns. However, in the current market conditions, altcoins may struggle to gain momentum. As of now, Cardano is valued at $0.246.