A crypto analyst, Benjamin Cowen, known for his large following, has identified the potential downside price target for Cardano (ADA) if it experiences another correction. In a recent video update, Cowen warned his 849,000 YouTube subscribers that if the Federal Reserve does not reintroduce quantitative easing (QE), ADA may continue to decline.

Cowen further explained that there is a possibility of ADA dropping even further, especially if it follows a pattern similar to its previous cycle. If ADA were to decrease by 56%, it could potentially fall below $0.60, which is the level it reached during the last cycle. There is also a chance that ADA could return to its previous price level of $0.357 if Federal Reserve Chair Jerome Powell maintains his stance against implementing QE and encourages continued participation in the cryptocurrency market.

Quantitative easing refers to a government’s central bank purchasing financial assets to increase the money supply and stimulate economic activity.

Cowen also analyzed ADA’s technical indicators, such as its 20-week simple moving average (SMA) and 21-week exponential moving average (EMA), which suggest that the cryptocurrency may experience another significant decline. He highlighted the importance of monitoring ADA’s bull market support band, noting that it previously dipped below but closed around the 20-week SMA during mid-2023. Earlier this year, ADA was just above the 21-week EMA. The 20-week SMA for ADA is approximately $0.56, while the 21-week EMA is around $0.67, corresponding to a potential price of approximately $0.53.

Currently, ADA is trading at $0.89, experiencing a 3% increase in the last day. On December 2nd, it was valued at $1.21.

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