Veteran analyst Benjamin Cowen believes XRP is sliding into the “depression phase,” projecting a downward trajectory that could see the asset plummet further.
Amid Cardano’s (ADA) turbulence, respected veteran analyst Benjamin Cowen has expressed concerns about the asset’s price movements. Cowen suggests that there’s a possibility that ADA is on the brink of entering what he calls the “depression phase.”
This phase characterizes further bearishness that could see the asset drop below its current position. This trend could devastate market participants, considering ADA is already 48% from its yearly high of $0.4617.
Good chance #ADA is about to enter the depression phase.
Remember, last cycle, #ADA bottomed only 2 months before the halving.
It also spent the second half of 2019 going down (even before the pandemic) pic.twitter.com/SL4CWQPmue
— Benjamin Cowen (@intocryptoverse) August 26, 2023
Drawing parallels to the previous market cycle, Cowen points out that Cardano experienced a price bottom during the last cycle just two months before the BTC halving event of May 2020.
The next halving is still eight months away, slated for April 2024. As a result, the analyst believes the current bearish position could worsen as the cycle progresses.
He highlights that ADA’s downward trajectory is not a new phenomenon, citing the second half of 2019 when the asset was already on a downward trend, even before the onset of the pandemic.
Cowen’s analysis includes a comparison of the Return on Investment (ROI) of ADA after the peak of both the last and current cycles.
This data illustrates that ADA has been facing diminishing losses over time. However, based on the historical trend, Cowen suggests that if the current cycle follows a similar timeline, ADA could have around three more months before reaching its bottom.
BTC Outpaces ADA
In April, Cowen projected that the ADA-to-BTC pair would reach 800 sats by the summer of 2023 and maintain a range between 800 and 1200 sats.
However, his outlook has shifted due to BTC outpacing ADA more than anticipated. Cowen now expects a plunge to 400 sats in the coming months. He believes this is plausible, as ADA has dropped to such a level in the past.
Cowen also draws attention to the Year-to-Date (YTD) ROI of ADA in comparison to the year 2019. He suggests that ADA’s trajectory might align with its general path in 2019, albeit not precisely. The Crypto Basic previously called attention to this trend.
Despite his analysis, Cowen acknowledges the uncertainty of pinpointing ADA’s bottom accurately. Meanwhile, Cardano is changing hands at $0.2593, down 44% over the past year.