Analyst Benjamin Cowen said a number of factors could prevent Cardano (ADA) from starting a bull run for now.
In new update On YouTube, Cowen told his 692,000 subscribers that Bitcoin (BTC) was the “first” factor that could prevent ADA from moving higher.
The analyst explained that BTC controls the health of the market and while Bitcoin price remains bearish, ADA is finding it difficult to buck this trend.
ADA rose to $1.61 on Tuesday from $1.19 last weekend, but has fallen back to $1.34 at press time.
Cowen noted that ADA’s “bull market support band” between $1.64 and $1.81 could now act as resistance. The bull market support band is a technical indicator that is a combination of the 20-week SMA and the 21-week EMA.
“Once broken, the support band can now provide strong resistance for the price.”
Weekly ADA/USDT Chart | Source: TradingView/Benjamin Cowen
Many projects are expected to be launched in 2022 on Cardano’s smart contract platform. Input Output Hong Kong (IOHK) recently announced plans to expand the network this year, including the implementation of side chains, separate blockchains connected to the main chain to allow the transfer of assets between them.
IOHK CEO Charles Hoskinson recently too said that a number of upgrades will be completed this year and will allow Cardano to keep pace with other leading smart contract platforms.
However, Cowen cautions traders against monitoring the success of these upgrades.
“Are you sure you won’t have any problems implementing it? I encourage people to hold back their expectations in the short term.
As with anything when you do something, there are ups and downs along the way.”
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