Cardano has done very little during the trading session on Thursday as we continue to see a general malaise in the crypto markets. At this point, the market looks as if it is ready to continue going lower, as the chart of Cardano is picture-perfect when it comes to describing a downtrend.
At this point, the 50 Day EMA continues to offer significant downward pressure, so it’s not a huge surprise to see that we have struggled to get above there. Even if we do break above the nifty Day EMA, it’s difficult to imagine that this market will continue to rally for the longer term. However, the $0.80 level above is an area that had been previous support, so it should now be resistance. If we do get a breakout above the 50 Day EMA, it’s a short-term recovery and perhaps a short-term trade. However, that is not the safest of all moves. In fact, I suspect that if we do rally, it’ll be a nice opportunity to short Cardano near $0.80. That being said, it’s very unlikely to do that.
On the other hand, if we break down below the $0.60 level, Cardano is going to go much lower, reaching down to the $0.40 level, where we had bounced from previously. The fact that the 50 and the 200 Day EMA is so spread out, shows that we have a lot of momentum to the downside, so I just don’t see anything changing. Furthermore, Cardano has been slow-moving to implement new changes, so it’s very likely that we are going to continue to see a lot of “all the rallies” type of situation.
Looking at this chart, it’s very likely that we will continue to see people jump all over this market, and I think we not only get down to the $0.40 level but break down even further than that. In fact, Cardano is in serious trouble of becoming extinct unless the ball gets moving. Yes, there is a lot of potential there, but at this point, the fact that Cardano continues to drag its feet is knocking doesn’t bode well for its future. However, if they can start to get some of their designs on smart contracts to get moving, they may have an opportunity to go higher.
