Cardano (ADA) Price To Bottom 50% Or More If This Happens, Claims Crypto Expert
While Ethereum (ETH) competitor Cardano price maintains its multi-month decline, well respected crypto expert Benjamin Cowen examines the situation.
Cowen examines prior occasions where Cardano was in a brief downturn and says that since ADA currently appears reasonably cheap after falling 83% of its price from its all-time high, historically it indicates that the currency might go much lower eventually bottoming.
He claims that ADA’s downturn in 2018 was more adverse than the present one, although macroeconomic circumstances were better back then when in comparison to that of present.
Cowen explains that Considering the fact that ADA has dropped considerably from its previous all-time high, it isn’t as horrible – still not halfway – to how it was back in 2018 where the price fell too soon.
The expert further says that if we check the normalized ROI (return on investment) from the highs, the first price crash, and the present one, it’s seen that the first one dropped much faster, regardless of the fact that the macroeconomic view was arguably a little pretty good back then. In 2018, and 2019, we could still see some difficulties. We all know that the stock market was struggling for most of 2018.
Cowen claims that ADA dropped 94% of its value between 2018 and 2020. At the time of posting, ADA was down almost 84% off it’s all-time high of $3.10.
ADA Price To drop 50% Or More
Cowen believes that if Cardano replicates its record as per the last decline, ADA might face a new round of depreciation which is of 50% or above. A decline of that size will place Cardano at around $0.16.
The strategist explains his point saying several of the noteworthy facts is that the normalized ROI for ADA against its peak as it remains now is more than 80%, which means it’s somewhere between 80% and 85%.
Cowen concludes his analysis saying, what we really observe is that around the same time, after attaining the first maximum point back in early 2018, ADA’s ROI would still be nearer to becoming – as fascinating as it seems – 94% flat, this makes a big difference once we reach about 84% or 85% when in comparison to 95%.