Cowen points out that while an investor usually anticipates an altcoin to appreciate during a bull market, it is critical to understand whether the asset is eclipsing Bitcoin.
“If an altcoin can’t outperform Bitcoin, then there’s no point in holding it. Can ADA outperform it… ADA outperforms Bitcoin in a bull market.”
Although ADA seems to be consolidating, the crypto has already gained around 3,000% in the past 12 months. Cowen argues that the smart contract platform may rally by more than 500% from the current price of $1.64 in the prevailing market cycle.
“Going back to ADA, I see this as still a long-term play. Now, buying ADA at $1.37 is much riskier than buying it at $0.02… but in the grand scheme of the cycle, I do think ADA has a ways to go. I don’t think 1.37 is the market cycle top by any means. Market cycle tops don’t look like this.
I think in the grand scheme of the market cycle, I think it’s going to go much higher than where it currently is. If I had to throw a ballpark number out there, I would say somewhere between like $5 to $10 is my guess… If I’m wrong because it goes higher than $10, that’s something I don’t mind being wrong about.”
Even though Cowen anticipates ADA to continue appreciating against the greenback, specifically after the prevailing Ethereum uptrend loses some momentum, the trader has cautioned that there is a likelihood of sharp and rude retracements along its upward journey.
“I can also tell you too that if we go there, it’s going to be one crazy journey and we’re not going to go straight to those levels. We’re probably going to have some major pullbacks along the way and the way we look at that is noting Ethereum had some pretty major pullbacks last cycle as well… I think it can go those levels, but it’s certainly not going to be an easy ride.”