Analyst Benjamin Cowen updates his outlook on Cardano (ADA) as competitor Ethereum is still in a downtrend.
In a new strategy meeting, the analyst said ADA has entered a large trading range, adding that the smart contracts platform will explode within the next four months.
“We have at least gotten to the point where I believe the ADA will break higher from mid-November to around the end of March, I’m speculating based on some previous trends. That was seen.”
ADA / USD. Source: Benjamin Cowen
Cowen says Cardano slipped below a bull market support band, which is a combination of a 20-week simple moving average (SMA) and a 21-week exponential moving average (EMA). He attributes the decline in ADA to Bitcoin’s recent correction from $ 69,000 to below $ 56,000.
Looking at Cardano versus Bitcoin (ADA / BTC), Cowen says there appears to be a downward trend, suggesting that the king cryptocurrency will outperform ADA. However, he names a catalyst that could end this trend.
“One thing that stops the bleeding is when we really start to see the Cardano ecosystem grow. If the smart contracts officially start and people use the ecosystem, I would be a little more optimistic in the short term. ”
ADA / BTC. Source: Benjamin Cowen
Cowen said that Cardano’s unusual sideways trading was typical of the crypto market, noting that in previous cycles, coins like Ethereum (ETH) also moved sideways for a long time before making explosive upward moves.
“I understand we can go through those boring times where people ask, ‘Why isn’t ADA doing anything?’ But look, we saw the same thing with Ethereum in the last cycle. There were times when it was basically flat for a year. That’s basically what ADA does. It’s been flat for the past 38 weeks or so. ”
ADA / ETH. Source: Benjamin Cowen
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According to Dailyhodl