In the ever-evolving world of cryptocurrencies, market resilience often proves to be a key determinant of long-term value and growth. Benjamin Cowen, CEO and Founder of ITC Crypto, recently underlined this premise and spotlighted Cardano (ADA) for its performance amid the prevailing crypto bear market.
Related reading: Cardano poised for consolidation in this price zone ahead of a reversal attempt
In a series of Twitter posts, Cowen shared insights that compare ADA’s current performance to its past trajectory, with implications for ADA’s investors and potential adopters.
A Historical Perspective: ADA’s Bear Market Performance
Cowen’s analysis raised an observation. According to Cowen, Cardano’s resilience in the current bear market exceeds its performance during the 2018-2020 bearish phase. He used a snapshot of ADA’s Return on Investment (ROI) to illustrate this, which highlighted two distinct trends.
to compare #ADA bear markets
Blue Line (January 2018 – March 2020)
Orange Line (September 2021-present)So far we see decreasing losses as a function of time.
The Orange Line will reach the length of the Blue Line on November 13, 2023. pic.twitter.com/XXKKSjiEmF
— Benjamin Cowen (@intocryptoverse) June 26, 2023
The image showed a blue line representing the bear market from January 2018 to March 2020, while the orange line represented the ongoing bear market that began in September 2021. In particular, the orange line showed a trend of diminishing losses over time.
Navigating the Bear Market: Cardano’s Enhanced Resilience
Cowen’s observations suggest a slower decline in the ADA price in this bear market compared to the previous cycle. Projections take place at the end of the current cycle around November 13, 2023, when the orange line is expected to reach the same length as the blue line.
These insights may indicate a less severe impact on the price of ADA in the existing bear market compared to the previous cycle. While ADA has experienced a drop in price over the past 24 hours, the broader analysis paints a picture of improved market resilience.
While the asset has been down over the past day, it’s worth noting that ADA has been bullish over the past week, rising nearly 10%. The asset is currently trading at $0.28 with a trading volume of over $185 million and a market cap of $9.8 billion.
Over the past 7 days, more than $500 million has been added to ADA’s market cap following the $9.1 billion asset market cap surge last Tuesday. ADA has also recorded an increase in trading volume, indicating increasing trading activity.
Related Reading: Cardano (ADA) Surges 10% Last Week, More Rallies Ahead?
Cardano’s ability to navigate bear markets with diminishing losses is testament to its resilience and inherent value proposition. While the immediate trend reflects a downturn, the longer-term performance of ADA signals a pattern of robustness.
Featured image from Shutterstock, chart from TradingView
