Prominent cryptocurrency expert Benjamin Cowen has warned of a possible decline in Cardano (ADA) prices. Currently valued at approximately $0.89, Cowen indicates that without a shift in the Federal Reserve’s quantitative easing (QE) policies, ADA may face significant downward pressure in the coming weeks.
How Does QE Affect Cryptocurrency Prices?
Cowen pointed out that altcoins, including ADA, are likely to struggle if the Federal Reserve maintains its current stance on QE. This monetary policy involves increasing the money supply to enhance market liquidity through asset purchases. He emphasized, “The statement from Federal Reserve Chairman Jerome Powell regarding ‘no QE, the market will proceed on its own’ could greatly influence ADA’s valuation, possibly driving it down to $0.357.”
What Technical Indicators Suggest for ADA?
Analyzing ADA’s technical situation, Cowen identified critical moving averages that currently support its price. He noted that if ADA follows past trends, it could experience another significant drop, similar to the 56% decrease witnessed in its last cycle. This could potentially bring its price below $0.60, he warned, highlighting the correlation between central bank strategies and ADA’s long-term recovery.
Key Insights:
- ADA currently trades around $0.89 but may decline further due to Federal Reserve policies.
- Critical technical indicators suggest a possible price drop below $0.60.
- Market conditions and central bank actions are pivotal for ADA’s future recovery prospects.
As ADA continues to navigate recent market fluctuations, the focus remains on the Federal Reserve’s actions and their implications. Investors are encouraged to stay alert and assess market signals carefully to inform their strategies.