Crypto analyst Benjamin Cowen is sharing his insights into Cardano’s (ADA) price action and where he thinks the Ethereum competitor is headed this market cycle.
In an interview with Altcoin Daily hosts Aaron and Austin Arnold, Cowen discusses the future of the seventh-largest cryptocurrency.
Cowen notes that while one generally expects an altcoin to increase in its USD value during a bull market, it is crucial to note whether the asset is outperforming Bitcoin.
“If an altcoin can’t outperform Bitcoin, then there’s no point in holding it. Can ADA outperform it… ADA outperforms Bitcoin in a bull market.”
Even though ADA may be in a bit of a consolidation phase at present and it is already up over 3,000% in the last 12 months, Cowen reasons that the smart contract platform may increase by over 500% from its price of $1.64 within the current market cycle.
“Going back to ADA, I see this as still a long-term play. Now, buying ADA at $1.37 is much riskier than buying it at $0.02… but in the grand scheme of the cycle, I do think ADA has a ways to go. I don’t think 1.37 is the market cycle top by any means. Market cycle tops don’t look like this.
I think in the grand scheme of the market cycle, I think it’s going to go much higher than where it currently is. If I had to throw a ballpark number out there, I would say somewhere between like $5 to $10 is my guess… If I’m wrong because it goes higher than $10, that’s something I don’t mind being wrong about.”
Although Cowen expects ADA to keep rising against USD, especially after the current Ethereum rally loses some steam, the trader warns that there may be some very steep and harsh pullbacks throughout its ascent.
“I can also tell you too that if we go there, it’s going to be one crazy journey and we’re not going to go straight to those levels. We’re probably going to have some major pullbacks along the way and the way we look at that is noting Ethereum had some pretty major pullbacks last cycle as well… I think it can go those levels, but it’s certainly not going to be an easy ride.”