Popular crypto analyst Benjamin Cowen is investigating whether the blockchain network Cardano (ADA) has what it takes to become a major smart contract competitor in the long term.
Cowen says he believes Cardano has a lot to offer and highlights his experience running a validation node on the platform that confirms transactions on the blockchain.
He says the process is easy and seamless to set up on Cardano, which gives the asset a huge edge over other smart contract platforms.
“I think this will stand the test of time. I’ve looked at validators in many different networks – Cardano, Polkadot, Avalanche, MATIC, Solana, Cosmos – I can tell you that I like Cardano best. “
Cowen adds that ADA has been trading above either the 20-week SMA (simple moving average) or the 21-week EMA (exponential moving average) as of October 2020 metrics.
Although Cardano’s charts appear strong versus Bitcoin, the analyst warns investors that ADA can be volatile even in a bull market.
“Remember, we’ve said many times at ADA that even in a bull market you can get at least 60% corrections … As we continue to navigate the market cycle, always be open to the idea of corrections. We have to acknowledge that just because there is institutional money in Bitcoin, Bitcoin will not stop Bitcoin from losing 50%. And if Bitcoin can drop 50% than we know, ADA can drop 50% or more.
With this in mind, ADA is currently holding up very well against Bitcoin. Now, if Bitcoin continues to drop and drop below $ 30,000, I would be skeptical that ADA can continue on this move. However, it doesn’t change the fact that I’m still very optimistic about ADA for this market cycle. I think it will go a lot higher than what it is now. “
In the short term, Cowen said, ADA’s price movement is primarily in the hands of Bitcoin, although the asset’s ability to stay afloat amid the turbulent BTC price movement is a sign of Cardano’s strength.
“I think we will eventually come out the other side, but rest assured, if Bitcoin continues to stay bearish in the short term, it will be a challenge for projects like Cardano to hit new all-time highs. The fact that ADA’s rating is as strong as it is for me is testament to how strong the network is. ”
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