$ADA: Crypto Analyst Explains His Concern Over Cardano’s Price Action, Reminds Him of 2019 Downtrend

In a caller Cardano (ADA) trading strategy session, salient crypto expert Benjamin Cowen issued a informing astir Cardano, a starring rival to Ethereum (ETH). Cowen drew attraction to the striking similarities betwixt Cardano’s existent terms enactment and its show successful the second fractional of 2019, a play marked by a accordant downward inclination for ADA.

To recognize Cowen’s analysis, it’s adjuvant to person a basal knowing of method analysis. Technical investigation is simply a method utilized by traders to foretell aboriginal terms movements based connected humanities data. One of the tools utilized successful method investigation is the bull marketplace enactment band. This is simply a scope betwixt 2 moving averages – the 20-week elemental moving mean (SMA) and the 21-week exponential moving mean (EMA).

According to a report by The Daily Hodl published earlier today, In a video merchandise don 24 July 2023, Cowen pointed retired that ADA’s terms enactment successful 2023 has mirrored its 2019 behavior, forming double-top patterns and dipping beneath the bull marketplace enactment band. A double-top signifier is simply a reversal signifier that is formed aft determination is an extended determination up. The “tops” are peaks that are formed erstwhile the terms hits a definite level that can’t beryllium broken. After hitting this level, the terms volition bounce disconnected it slightly, past instrumentality to trial the level again. If it can’t interruption this level for the 2nd time, past the terms volition usually plummet.

In 2019, contempt respective terms pumps, with increases of up to 41%, these rallies were short-lived and followed by a dilatory bleed-out successful the altcoin market. Cowen highlighted that adjacent aft the marketplace capitulated to caller lows, it did not people the bottommost for ADA, arsenic the token rallied and past faded again.

Cowen besides discussed ADA’s show against Bitcoin, i.e., the ADA/BTC trading pair. He noted that ADA didn’t bottommost against BTC until the 3rd 4th of 2019 and remained astatine those lows for different six months earlier rallying. Cowen suggested that a akin signifier could play retired for ADA successful the existent marketplace cycle.

As of the clip of writing, ADA is trading astatine $0.305, up 0.5% successful the past 24-hour period.

Featured Image by Traxer via Unsplash