Cardano (ADA/USD) predicted a further 60% decline. Does the price action show this?
Crypto analyst Benjamin Cowen expects ADA to fall another 60%
The cryptocurrency has been on a downtrend since August amid growing on-chain activity
ADA could claim lower levels
If you have been thinking of buying Cardano (ADA/USD), it could still be too early. According to popular crypto analyst Benjamin Cowen, ADA prices could fall by another 60%. The token traded at $0.31 at press time, meaning that Cardano could touch $0.12 per the prediction. Why does Cowen think so?
In a message to his more than 770,000 subscribers, Cowen says ADA faces a bear market resistance band. The resistance has rejected any price recoveries. The analyst believes ADA is one bear cycle behind Ethereum. The latter witnessed about a 95% decline in its first bear market. According to Cowen, ADA could witness “diminishing losses” that could take it down 94% or 95% from its all-time high.
The latest comments come even as Cardano continues to witness growing development activity. According to December 1 Santiment data, Cardano saw the highest development activity in the past 30 days. The data indicated that Cardano was 18% ahead in terms of development, ahead of the closest competitor, Polkadot. Interestingly, the activity has not been reflected in the price as ADA remains on a downtrend. Still, investors can be optimistic that the development activity is a precursor for future gains in ADA.
ADA on a descending channel amid a bear momentum
ADA/USD Chart by TradingView
The daily chart shows Cardano is bearish. The cryptocurrency has maintained a descending channel since August. The momentum is still weak, as shown by the price printing, a system of lower highs and lower lows. The RSI remains below the midpoint, indicating that bears are many for the cryptocurrency.
Should you buy ADA now?
Just as Cowen thinks ADA price will trade further lower, the technical outlook supports it. Only that it does not indicate where the likely bottom price for ADA.
To a technical reader, we need the price to settle at support, followed by a bullish price action to consider ADA a valid buy.
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