Cardano’s price has been trending lower. Despite bullish attempts to rally the market back, the currency has been moving lower over the past two weeks. ADA rose to an intraday high of $1.88 before hitting reverse. At the time of writing Cardano is trading in red at $1.81 and has lost 3.35 percent in the last 24 hours.
Cardano supporters predict that as the Hydra update approaches, the cryptocurrency’s price will rise. Cardano’s on-chain activity, on the other hand, has dropped to a level below that of layer-2 scaling solutions, and the Ethereum-killer has underperformed the top 30 cryptocurrency exchanges.
ADA to break out in the next four months?
As the Ethereum competitor remains in a downturn, crypto expert and trader Benjamin Cowen has updated his outlook on Cardano (ADA). The well recognised analyst claims that ADA has entered a large trading range and that the smart contract platform will break out within the next four months in a new strategy session.
Cardano has fallen below the bull market support zone, which is made up of the 20-week simple moving average (SMA) and the 21-week exponential moving average, according to Cowen (EMA). He relates the dip to Bitcoin’s recent correction, which saw the cryptocurrency fall from $69,000 to below $56,000, affecting the whole crypto market.
“We’ve at least reached the window where I believe we’ll see ADA ultimately breakout to the upside, starting from mid-November until sometime in late March is what I’m dubiously speculating on, based on some prior trends that we’ve seen.”
Cowen believes that when comparing Cardano to Bitcoin (ADA/BTC), it appears to be bleeding downward, implying that the king crypto is set to outperform ADA. He does, however, mention one factor that could put a halt to the pattern.
Cardano’s boring sideways trading, according to Cowen, is typical of crypto markets, adding that coins like Ethereum (ETH) drifted sideways for long periods of time before making dramatic surges to the upside in prior cycles.
He acknowledges that we may go through these tedious periods of “Why doesn’t ADA do anything?” but points out that the same thing happened with Ethereum during the previous market cycle.
We’ve seen periods where it just slid sideways for a year. ADA is essentially doing the same thing. For the past 38 weeks or so, it’s been going in the wrong direction.