Cardano ($ADA) Faces a 50% Plunge Against Bitcoin Based on Historical Data, Crypto Analyst Suggests
In a sobering evaluation, standard cryptocurrency analyst Benjamin Cowen has revealed that he believes the worth of Cardano’s native token, $ADA, may see its worth drop 50% in opposition to that of the flagship cryptocurrency Bitcoin ($BTC).
On the favored microblogging platform Twitter, Cowen shared his insights into the potential worth tracjectory of ADA, pointing to its fee relative to BTC, with the ADA/BTC pair now hovering across the 900 satoshi mark, the identical stage it was at 4 years in the past.
Drawing from the pair’s historic information, Cowen advised that ADA might be poised for a precipitous descent throughout the imminent 5 to 6 week window in opposition to the flagship cryptocurrency, cautioning buyers there’s a chance of a 50% stumble for the sensible contract platform’s native token.
Cowen analyzed the token’s worth historical past and drew a development line from its lowest level in 2018 to conclude that ADA may drop to the degrees it had within the third quarter of 2019, with the opportunity of the identical drop occurring this yr.
The analyst identified that whereas he primarily appears at altcoin charts relative to Bitcoin., he additionally doubts ADA’s worth will maintain up when in comparison with the U.S. greenback, anticipating it to hit new lows by the top of the yr.
As CryptoGlobe reported, Cardano was lately permitted for buying and selling as a commodity in Indonesia, the world’s fourth most populous nation. The event is notable, as ADA was labeled as a safety by the U.S. Securities and Change Fee (SEC) in its lawsuits in opposition to main exchanges Binance and Coinbase.
As CryptoGlobe reported, whereas Cardano has been underperforming, the cryptocurrency’s buying and selling quantity, energetic addresses, and social dominance have all lately reached yearly highs.
Notably, standard commission-free buying and selling platform Robinhood is rethinking its help for a number of cryptocurrencies, in response to the agency’s Chief Authorized Officer Dan Gallagher, in mild of the SEC’s crackdown on crypto exchanges. These embrace ADA, amongst others.
Featured picture by way of Unsplash.
