Prominent analyst says Cardano (ADA)current price is a repeat of its 2019 downward pattern, adding that the coin could find its bottom against Bitcoin in Q3 2023.
Benjamin Cowen, a prominent crypto analyst, has warned that Cardano (ADA), the ninth-largest cryptocurrency, is repeating a 2019 downward pattern.
Notably, Cowen voiced this concern in a recent strategy session focused on ADA.
According to the analyst, ADA endured a tough time in the second half of 2019, when the coin’s price and other altcoins plummeted to new lows.
“The second half of 2019 was probably the hardest part of the cycle because it wasn’t very exciting. You just watched the altcoin market slowly bleed out,” Cowen said.
Cardano Unable to Sustain Occasional Pumps
Although ADA recorded occasional price pumps during this period, the price gains faded almost immediately, resulting in a massive decline for the crypto asset, the analyst said.
Interestingly, the analyst cited an instance where ADA enjoyed a 41% spike in the latter part of 2019, which saw its price move to $0.050 from $0.035.
He also recounted another instance where ADA surged 40% from $0.041 to $0.058 in 2019.
However, ADA could not sustain the rally, leading to a massive plunge. Like its 2019 price action, the analyst said ADA experienced a similar rally this year when it formed double-top patterns.
He added that the crypto asset plunged below the bull market support band. For clarity, the bull market support band is an indicator that combines both the 20-week simple moving average (SMA) as well as the 21-week exponential moving average (EMA).
Similarities Between ADA 2019 & 2023 Market Cycle
Per Cowen, the similarities between ADA’s market performances in 2019 and 2023 include the fact that the coin slumped below the bull market support band and the formulation of a double top.
Furthermore, the analyst highlighted how ADA reached a low point of $0.028 in 2018 and then rallied in 2019. Drawing parallels to the present, the analyst said ADA fell to a low of $0.315 in 2022 and skyrocketed this year around June.
“We saw ADA put in a low into 2022 [at $0.315] just like it did in 2018 [at $0.028]. We saw it pump in 2023 just like it did here in 2019,” the analyst said.
Cardano Could Find Its Bottom Against BTC in Q3
Meanwhile, Cowen also provided an analysis of ADA’s performance against Bitcoin. In 2019, ADA did not reach its bottom against Bitcoin until the third quarter of the year.
Additionally, he said ADA endured “those lows” for six months before soaring. The analyst speculated that ADA could experience a similar scenario in the current market cycle.
At the time of writing, ADA is changing hands at $0.3, down 1% in the past 24 hours. The ninth-largest crypto asset has also plunged 5% in the past week, according to CoinGecko data.
Despite Cowen’s analysis, some experts still believe ADA is one of the best crypto assets to buy in the current bear market. As reported earlier, Cardano’s fans staking pool associate Pieter Nierop highlighted ten reasons investors should purchase ADA.