"Cardano (ADA) Price Could Dip Below $0.60, Following Previous Market Cycle"

"Cowen goes on to say that ADA's technical indicators, such as its 20-week simple moving average (SMA) and 21-week exponential moving average (EMA), are lining up with the theory that the crypto asset could see another sizeable dip."

There's a chance that [email protected] could go lower, especially if it follows what it did last cycle, an analyst has warned.

At the start of this year, ADA dropped to a low of $0.357, but it has since risen to hit highs of $1.21 in December 2023.

However, the analyst, Charles Cowen, claims that there is potential for the crypto asset to test that support level again as the technical indicators suggest that it could.

"There’s also a chance that it comes back down to that, because [Fed Chair Jerome] Powell just says ‘no QE, continue on playing in the sandbox and the cryptoverse and we’ll give you QE sometime later,’" he said.

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

Cowen goes on to say that ADA's technical indicators, such as its 20-week simple moving average (SMA) and 21-week exponential moving average (EMA), are lining up with the theory that the crypto asset could see another sizeable dip.

"The other thing to look at is the bull market support band. The bull market support band for ADA to Bitcoin – you can see that first of all, it wicked below it but it had a weekly close right around the 20-week SMA. It was just above the 21-week EMA, so I would also keep an eye on that.

The 20-week SMA for ADA is around $0.56 and the 21-week EMA is around $0.67, so that would also correspond to around $0.53."

ADA is trading for $0.89 at time of writing. It has risen by 3% over the past 24 hours.

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