At the time of writing, Cardano was trading at $2.08, down 11.32 percent. It is the biggest one-day percentage drop since September 7, and the market is bracing for a quick recovery.
Best-case Scenarios for Cardano Price
Cowen says that one reasonable scenario for ADA is a lengthy grind around the 20-week simple moving average (SMA) before making another step higher from present prices, according to a new strategy session.
A more realistic, yet still bullish, approach for ADA would be to basically grind it out here for a little while. And, in the best-case scenario, we hold the 20-week, after which we may be able to move higher.
Cowen also considers the long-term implications of Bitcoin falling, which would bring altcoins like Cardano down with it.
Another optimistic scenario, but one that is more short-term bearish, is if Bitcoin gets another shakeout, say down to the mid $30,000s, around $38,000 or $41,000 around the 20-week SMA, then we can even go below the 20-week SMA again and continue moving along, eventually breaking out.
Cardano’s rise should be more moderate, rather than erratic, parabolic swings upward. According to the analyst, ADA has the fundamental power to make new all-time highs on a consistent basis.
Cowen says that,
Let’s take ADA for what it is and say, “OK, we’ve had a really well last year and a half.” We just implemented smart contracts recently. Okay, we’re coming to see who’s going to use these smart contacts. We’ll gradually develop the ecosystem that supports Cardano, with the goal of gradually increasing its value. That, in my opinion, is preferable to climbing up too soon. I believe that going up slowly and steadily is always preferable to having a parabolic move since it is more sustainable.”