Cardano tried to rally Tuesday but continues to drift lower as crypto is being manhandled lately. That being said, we have lost almost 2.5% during the day, after initially trying to go green. Cardano is going to be no different than any other cryptocurrency, as it is under the thumb of fear right now. After all, risk appetite has been absolutely decimated, and markets like Cardano will continue to look far too risky for a lot of the “big money.”
When you look at this candlestick, it is yet another shooting star, just as we had seen shooting stars during the previous two sessions. However, if we were to turn around and take out the high from a couple of days ago, that would actually be a very strong sign, perhaps opening up the possibility of an attempt to reach the 50-day EMA, and then eventually the 0.70 level. Nonetheless, I think that would take a lot of momentum, and I certainly think that the most likely of directions is the downside.
If we were to break down below the $0.45 level, then I think it is only a matter of time before Cardano reaches the $0.40 level, and then possibly even much lower than that. In fact, I think it is more likely than not that we will end up breaking down. The 0.30 level underneath would be a potential target, and then we could be looking at $0.20 after that. Cardano seems to be taking its time rolling out its network and all of the roadmap that goes with it. However, that can be said about most crypto, as it is developing much slower than people thought.
Cardano has a branding problem as well because although it is a sound and fundamentally interesting technology, the reality is that there are a lot of competitors out there, some of which are much more publicized. That being said, so far the real-world use case scenario of Cardano has been underwhelming, but the potential is still there. If money starts to move out on the risk spectrum, Cardano might have a real shot at a turnaround. Right now, I believe that you are more likely than not going to get an opportunity to buy it at much lower levels if you are patient enough.
