- Youtuber Cowen shared a tweet comparing the ROI of ADA in 2019 and 2023.
- ADA’s highs in 2019 were much higher than the highs in 2023.
- Cardano could test the support level before gaining value and spiking.
Youtuber and CEO of Into The Cryptoverse, Benjamin Cowen made a comparison of Cardano’s (ADA) Return on investment (ROI) in 2019 with ROI in 2023. According to the tweet shared, it could be noted that the 2023 ROI has dwindled. In particular, the ROI rose from 1 to a value higher in 2023 during the first 50 days of investment. However, in 2019 the ROI dropped below 0.9 before rising above 1.
$ADA in 2023 compared to 2019 pic.twitter.com/sOpkaSy5yw— Benjamin Cowen (@intocryptoverse) October 3, 2023
Notably, the 2019 ROI rose to more than 2 when the investment maturity reached 100 days. The 2023 ROI was below the 2 mark during the same maturity period. The ROI could be reducing due to Cardano losing value.
Considering the chart below, ADA started the week with an opening market price of $0.2454, and shortly after gaining some momentum, it immersed itself below the opening market price.
ADA/USD 1-Week Chart (Source: CoinMarketCap)
Thereafter, ADA started to rise above the opening market price making higher highs until the third day. During the early hours of the third day, ADA fell but recovered quickly and started making higher highs and reached a maximum price of $0.2689 on the fifth day. Thereafter the next two days, ADA started to make lower highs and it is trading at $0.2562 after a decrease of 2.19% in 24 hours.
ADA/ USDT 1-Day Chart (Source: Tradingview)
The above chart shows that since March 2023, ADA has been losing value. It has been trading inside a falling wedge making lower highs and lower lows. Currently, it seems to have broken out of the wedge, and at the same time, it has touched the upper Bollinger band. Hence, to mitigate being called overbought, Cardano may test the support level at $0.2508 and thereafter start spiking.
In the event the above-mentioned thesis is validated, then, ADA could first test the resistance level at $0.3218 and with more bulls entering the market this level could be breached. Thereafter, ADA could test the $0.4148 level and climb even higher to $0.5228 if the bulls dominate the market. If the bulls take over the ROI which currently stands at 1.039 could drastically rise as the traders sell and get the profits.
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