A popular cryptocurrency analyst says it’s “decision time” for smart contract platform Cardano (ADA).
In a new video, Cowen said that ADA may be reflecting the 2016/2017 market structure of the currently leading altcoin Ethereum, briefly falling to new lows in late 2016 before surging more than 100x in 2017. As
Cowen points out, ADA has recently retouched the bull market support band, a market indicator derived from the 20-week simple moving average (SMA) and the 21-week exponential moving average (EMA). The token is currently hovering around $1.09.
Cardano is trading at $1.09 at the time of writing, which is lower than when it was traded a week ago. However, the ninth-ranked crypto-asset by market cap has increased by almost 35% over the past month.
Cowen explains that if Cardano is to emulate Ethereum’s 2016/2017 upward move, ADA should return to the top of its current range around $2.60 in the next two months.
“What we’re looking for is the idea that it’s decision time again, the point is, Ethereum had the same market structure [in 2016/2017] where it was playing some kind of ping pong and it’s been about a year since it finally got into that range then we went back to the bull market support band… [ETH] consolidated around it for about a month to a month and a half and then we broke up. The ADA is very similar to this situation.”
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