A widely respected cryptocurrency analyst is identifying a downward price target for smart contract platform Cardano (ADA) if it undergoes another correction.
In a new video update, cryptocurrency strategist Benjamin Cowen told his 849,000 YouTube subscribers that ADA could continue to fall if the Federal Reserve does not restart quantitative easing (QE).
“It’s possible that (ADA) will go lower. Especially if you follow the last cycle… A 56% drop would actually put us below $0.60, the same level as last time…
(Fed Chairman Jerome) Powell said, ‘There is no QE. There is always a chance of it going back down to ($0.357 price level) because ‘if you keep playing in the sandbox and in the world of cryptocurrencies, they will give you QE at some point in the future.’ There’s a chance that could happen.”
Quantitative easing is when a government’s central bank purchases financial assets to increase the money supply and stimulate economic activity.
Cowen went on to say that ADA’s technical indicators, such as the 20-week simple moving average (SMA) and 21-week exponential moving average (EMA), are consistent with the theory that the cryptocurrency asset could see another significant decline.
“Another thing to look at is the bull market support zone. Bull Market Support Bands from ADA to Bitcoin – First we can see what lies below (mid 2023). However, each week closed near the 20-week SMA. It was just above the 21-week EMA (earlier this year), so we’ll have to keep an eye on that as well.
ADA’s 20-week SMA is approximately $0.56 and its 21-week EMA is approximately $0.67, so this also corresponds to a price tag of approximately $0.53.”
ADA is trading at $0.89 at the time of this writing, up 3% over the past day. On December 2, it was valued at $1.21.
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