Benjamin Cowen, a closely followed analyst in the crypto world, cardano While continuing the ‘multi-month’ downtrend of the price, he gave his opinions on possible scenarios.
Posting a new video on his YouTube channel, Cowen also looked at previous periods when Cardano was in a long-term downtrend and noted that ADA was already looking pretty low-priced after losing 83% of its value from its all-time high, but before hitting a bottom, Cowen He noted that it could move further away from the all-time high.
He also highlighted that while macroeconomic factors are better compared to today, the 2018 downtrend for Cardano is much worse than the current one.
“Although we know Cardano has dropped significantly from its previous all-time high, it’s much better in terms of drop rate than it did in 2018.
Koinfinans.com As we mentioned, if we look at the Cardano normalized ROI (return on investment) from the peak, the first bear market, and then the one we’re in right now, you can see that the first one is down a little bit faster. At the time of those declines, the macroeconomic outlook was better than it is today. There were still some issues in 2018 and 2019. There are those of you who remember that the stock market was also stuck for most of 2018.”
Benjamin CowenHe highlighted that Cardano price lost 94% of its value from 2018 to 2020. At the time of writing, ADA was down about 84% from its all-time high of $3.10.
Cowen thinks ADA could experience a new devaluation of 50% or more if Cardano shows up again during the previous downtrend. A correction of this magnitude would plunge Cardano’s bottom price to around $0.16.
“One of the interesting details is Cardano. The peak-normalized ROI for today is now more than 80%, ie 80-85%, something like that. But what you will notice is that at the same time, after the same exact timeframe, after the first peak in early 2018, we would have already seen ADA’s ROI closer to 94%, as crazy as it may sound. And that makes a big difference when talking about 84% or 85% versus 95%.”
Current price action here you can follow.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.