Popular cryptocurrency analyst and influencer Benjamin Cowen has said that there is a “real risk” that the price of smart contract platform Cardano ($ADA) could still drop over 60% during the bear market before bottoming out.
In a video Cowen shared with his over 770,000 subscribers on the Google-owned video-sharing platform YouTube, the analyst said that Cardano is facing a bear market resistance band that has rejected its advances, and could be in for more pain.
Per Cowen, Cardano could be one bear market cycle behind Ethereum, which dropped around 95% during its first bear market. ADA, he said, could still face more downside even if it faces “diminishing losses” during this cycle.
If ADA, say, does have diminishing losses or something in this bear market, and say instead of dropping 98%, you know let’s say it’s one cycle behind Ethereum, let’s suppose it drops 94% or 95%. A 95% drop from the all-time high would put ADA between 10 and 20 cents, right? That’s where it would ultimately put it.”
At the time of writing, Cardano is trading at around $0.31 per token, having dropped significantly from its all-time high near the $3 mark seen last year. For the cryptocurrency to reach Cowen’s $0.10 target, $ADA would still have to drop over 60%.
Per the analyst, the cryptocurrency could hit its bottom between $0.10 and $0.20 “sometime in 2023,” as the bear market keeps going. The Cardano network has notably been growing even as prices drop, however.
As CryptoGlobe reported, the number of smart contracts deployed on the Cardano ($ADA) network has grown by more than 300% year-to-date as the cryptocurrency’s network keeps on growing, despite the ongoing bear market.
According to data from Cardano Blockchain Insights, there were 947 Plutus smart contracts on the Cardano network at the beginning of the year. That figure has now surged to surpass 3,790.
Plutus, it’s worth noting, is the “smart contract platform of the Cardano blockchain” that allows users to “write applications that interact with the Cardano blockchain.”
Cardano recently reached a new milestone with the launch of its first stablecoin. Other stablecoins are being created on the Cardano network. EMURGO, which is the commercial arm of Cardano, announced the planned launch of its new dollar-backed stablecoin USDA, which is “the first fully fiat-backed, regulatory compliant stablecoin in the Cardano ecosystem,” earlier this month.