dailyhodl.com
Closely-followed trader Benjamin Cowen believes that Cardano’s native asset ADA is one of the fastest racehorses in the current boom cycle.
In a new video, Cowen tells his 423,000 YouTube subscribers that ADA is significantly outperforming most large-cap crypto assets including Bitcoin (BTC) and Ethereum (ETH) since the coronavirus-induced panic last year.
“It is the normalized ROI (return on investment) of ADA and a lot of other cryptocurrencies from March 13th, 2020. Now, arguably this punishes the ones that didn’t crash as hard but it also highlights the ones that have given a higher ROI since the crash on the daily timeframe… You can see that ADA has spent a decent amount of its time in the lead. It’s a racehorse. It’s one of the racehorses that we have for this cycle.
It was in first place here (July 2020) out of the coins that we’ve been tracking. It was first place here (February 2021) for a while… During this dump, VeChain (VET) dumped a lot harder than ADA has so far and ADA has therefore reclaimed the lead.”
Cowen is also closely watching Cardano’s recent performance amid the marketwide correction. The trader highlights that ADA must stay above key levels to keep its long-term uptrend intact.
“ADA would have to actually drop another 30% or so to get back to the 20-week SMA (simple moving average). Now if you’re curious, the 20-week SMA now corresponds to $1.08 and the 21-week EMA (exponential moving average) corresponds to $1.12. So that would be the bull market support band.”
At time of writing, ADA is trading at $1.32, according to CoinMarketCap.
Looking at Cardano against Bitcoin (ADA/BTC), Cowen says ADA is showing signs of strength as the rest of the altcoin market succumbs to the sell-off.
“ADA is actually one of the few coins that’s holding up relatively well against Bitcoin. Many coins have bled significantly against ADA. ADA has not. It has come down some. You can see that it’s currently down around 22% against Bitcoin. There are many coins that would love it if they were only 22% [down] against Bitcoin.”
While the trader remains bullish on Cardano, he says the short to mid-term trajectory of the fourth-largest cryptocurrency largely depends on whether Bitcoin can crawl out of the downtrend or not.
“I am going to be skeptical that ADA can put in a new all-time high until Bitcoin figures out what it’s doing. Because with this type of instability in the market with Bitcoin, it is going to make it very challenging for enough confidence to resume for Cardano in the short term for it to put in decisively a new all-time high and go to like $2.50.”