There’s nothing on this chart that looks remotely bullish.
Cardano has done very little over the last couple of weeks, as it has been hanging out just above the $0.45 level. This is a market that looks as if it is killing time until it decides what its next move is. The fact that we have sat in the same area for a little while does provide a little bit of comfort for those who were bullish on Cardano, but at the end of the day, the fact that we have not rallied it all should probably be the focus.
If we were to break down below the $0.45 level on a daily close, then I think Cardano has further to fall. Regardless, Cardano is going to struggle in this environment, as the crypto world itself is falling apart. There are a lot of projects out there that have absolutely no business being traded because they are never going to do anything. I’m not saying that about Cardano, but there is going to be a great reckoning over the next year or two, because we have reached the point as we did in 1999 with tech stocks.
Eventually, you have to turn some type of profit or actually be used for something other than a pet project. As things stand right now, crypto has a lot of promise but at the end of the day, it’s not overly useful the moment. Because of this, and the massive speculation that we had seen in some of the smallest coins, there is a lot of financial destruction that people will have to sit on top of before they can dip their toes back into the water. There have been a lot of people wiped out by the crypto meltdown, so it’s going to take some time to build that trust back up. However, if you are a longer-term believer in the Cardano ecosystem, and I certainly think there is something to be said about it, you should welcome these breakdowns because they will offer longer-term investing opportunities. As far as trading goes, the only thing you can do with crypto right now is short every rally that comes along. The 50-day EMA sits at the $0.60 level and is dropping toward the current price action. There’s nothing on this chart that looks remotely bullish.