In a bearish forecast for the cryptocurrency Cardano ($ADA), popular digital currency analyst Benjamin Cowen suggested that the digital asset could continue to languish for the remainder of the year before bottoming out.
During a recent strategy discussion, Cowen drew on historical market trends to suggest that Cardano may not hit its nadir until 2023 has drawn to a close, highlighting the ADA/BTC ratio as a key metric to monitor, and noting that if the pair drops to roughly 0.000004 BTC, it could signal a turning point for the smart contract platform.
Per his words, based on the last cryptocurrency market cycle we “know that it can last for another five months or something” before the cryptocurrency hits its bottom. The analyst added that predicting exactly when a market will bottom out is a challenging task.
Cowen, as Daily Hodl reports, further expressed his belief that observing the ADA/BTC valuation, and its ability to sustain its lows, could be more beneficial in the long run. If the pair drops to the 400 satoshi mark, he said, and manages to hold onto that level, entering a position could start to make sense.
Although not entirely discounting the possibility of ADA rebounding in its USD pair if Bitcoin rallies, Cowen emphasized the challenges of investing in ADA if it continues to lose value against Bitcoin, as the “risk-adjusted returns are not as attractive as just holding Bitcoin during this phase of the market cycle.”
As CryptoGlobe reported, while Cardano has been underperforming, the cryptocurrency’s trading volume, active addresses, and social dominance have all recently reached yearly highs.
Notably, popular commission-free trading platform Robinhood is rethinking its support for multiple cryptocurrencies, according to the firm’s Chief Legal Officer Dan Gallagher, in light of the SEC’s crackdown on crypto exchanges. These include ADA, among others.
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