Ben Cowen Highlights Cardano’s ADA Weakening Against Bitcoin, Even Amid Rally

Crypto analyst and host of the popular trading platform Into the Cryptoverse, Benjamin Cowen, is bearish on Cardano’s (ADA) short-term prospects despite solid performance over the past week. In a series of tweets capitalising on technical analysis and charting techniques, Cowen suggests that Cardano’s support levels are weakening and the coin will likely drop a significant amount in Q3 before rebounding.  

As we can see in the graphic above, Cardano’s price action (charted relative to BTC) has fallen below both the trendline and the historic support levels, suggesting ADA will re-test the bottom support level (horizontal yellow line) before rebounding.  

BTC Dominates As Investors Consolidate Portfolios

The crypto market’s mini-rally has been centred around Bitcoin, and for good reason. With an upcoming halving event and a likely spot ETF approval coming from the SEC, Bitcoin is leading the way out of the current bearish conditions. However, such uncertain times tend to mean institutional investors move out of riskier assets – altcoins like ADA – and into blue-chip cryptocurrencies like BTC. 

However, Cowen’s prediction and the continued bleeding of altcoins is – for now – being held at bay as Cardano recorded gains of 13% over the past week. In general, lots of money has flown back into the crypto market, giving coins like ADA and ETH a boost after months of poor performances. However, BTC is still the big winner out of all the activity, up nearly 20% in the past week.

Cardano Sees Staking Upgrade

The Cardano Foundation continued to move along its development roadmap, with the newest upgrade coming to the network’s staking mechanism. Validators on the Cardano blockchain can now participate for just 170 ADA, or $47 (AU $73), which is half of the original minimum lock-up requirement.