According to closely watched crypto analyst Benjamin Cowen, the Cardano (ADA) bear market likely has some way to go before bottoming out.
In a new strategy session, Cowen says that based on previous market cycles, ADA may need the remainder of 2023 to find a bottom.
Cowen also thinks ADA/BTC is also worth keeping an eye on, saying the pair reaching around the 0.000004 BTC ($0.11) level could mark a bottom for the smart contract protocol .
“We know that we have just hit a new low. Again based on the [last cycle]we know it could be another five months or something.
So that’s something to think about. It’s really hard to name bottoms.
I think it’s more important to look at the ADA/BTC valuation and see if it holds its lows, maybe future lows. Let’s say if it goes to 400 satoshis (0.000004 BTC), if it can hold those levels then it could start to justify it. But right now, in my opinion, it’s a little harder to justify.
Not to say it can’t bounce back on its USD pair if Bitcoin goes up again we know it probably will but the problem is that again if it bleeds against Bitcoin it doesn’t matter if Bitcoin goes up or down, the risk-adjusted returns are not as attractive as just holding Bitcoin during this phase of the market cycle.”
Cardano is currently trading at $0.26 and has been trending down since August 2021 when it reached its all-time high of $3.09. Meanwhile, the ADA/BTC pair is worth 0.0000099 BTC ($0.26).
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