Cardano rallied ever so slightly during the trading session on Thursday but has found the $0.60 level to be a bit too much to get above. Quite frankly, this is a market that has been garbage for quite some time, and the rally that we recently had seems to have been a short-term phenomenon because we cannot find any staying power. This should not be a huge surprise, because there will be traders that had tried to catch this falling knife and are now happy to get out at roughly breakeven.
Until the Federal Reserve starts to loosen monetary policy, it’s very difficult to imagine a scenario where crypto is the place to be. Because of this, the market is likely to continue being a bit of a mess, but given enough time it’s likely that we could see the market bottom, as Cardano certainly has an interesting profile going forward. Whether or not it will be anything that can keep up with demand and the needs of the world is a completely different question.
Cardano seems to be focusing on the Third World, which is an area of the world that has been underbanked. This makes it a little bit more unique than some of the others, and of course, the transaction times are much quicker. However, the biggest problem crypto has is that it seems like it’s a solution looking for a problem. I believe that we are about to see crypto get hammered yet again and that the selling is not over.
If you believe in Cardano longer-term, you will have an opportunity to pick up ADA at lower prices, which would be what I would plan on going. The market has collapsed roughly 50% since April and looks likely to continue going lower. Whether or not Cardano survives is not necessarily my concern, because I think it will. However, it would not surprise me at all to see Cardano eventually go looking to the $0.40 level, and then eventually break down below there. There’s just nothing out there that should be bullish for crypto right now, as the US dollar is extraordinarily strong, and there is a lot of risk aversion. When there’s risk aversion, big money does not go into more speculative investments like Cardano or the rest of the crypto world.
