While Cardano (ADA) continues its month-long downtrend, the popular cryptocurrency analyst, Benjamin Cowen, assesses its situation, compares it with the previous bear market and concludes what could be its… bottom.
Cardano could fall quite a bit lower
Cowen, after looking at similar periods in the past when Cardano recorded a similar run, concluded that despite the fact that the ADA has already lost 83% of its value from its all-time record high, it could fall quite a bit further until you can conclude that this is its true… bottom.
As the experienced and accomplished analyst points out, the downward trend in ADA in 2018 was much worse than the current one, despite the fact that macroeconomic factors were better then than they are now:
“Although the ADA has lost significant value from its previous all-time high, it is still not in as bad a spot as it was in 2018.
If you look at the ROI in the previous bear market and then compare it to it in this bear market, you can see that the first time there was a big decline at a fairly rapid rate, despite the fact that the macroeconomic conditions then were much better than they are today.”
It can go as low as $0.16
Cowen pointed out that the ADA had lost 94% of its value from 2018 to 2020. For comparison purposes, now the ADA has lost about 85% of its value from its all-time record high of $3.10.
Therefore, Cowen concludes that if Cardano replicates the performance it had during its previous downtrend, then ADA could see a new round of depreciation in value of 50% or more. A correction of this magnitude would put the… bottom of Cardano at around $0.16.