Cardano continues to fall apart
Cardano is a cryptocurrency that at one point offered a lot of promise. The cryptocurrency has fallen apart though, as shown on the chart attached to this article. Quite frankly, in a world where Bitcoin has exploded, the fact that this crypto has continuing bearish pressure suggests that it’s probably going to fall apart.
This isn’t 2016 or 2017, meaning that people are going to have to be discerning when it comes to any crypto they put money into. The last massive blow off top that resulted in the bubble popping in crypto is still in the fresh recesses of memory when it comes to the trading public, so they are not willing to throw money at anything that it has something to do with the blockchain. At this point, we will probably see the market separate the winners from losers. At this point, it looks like Cardano is going to be a major loser.
Going to zero? Maybe.
One of the things that I like paying attention to when it comes to technical analysis is the Fibonacci retracement sequence. The Cardano market initially tried to rally during the day on Monday, but pulled back at the 23.6% Fibonacci retracement level, one that is very minor by most accounts. But frankly, most traders don’t even pay attention to it. Because of this, it shows just how weak this market is, because they didn’t even wait to start shorting it at the 38.2% Fibonacci retracement level, a much more commonplace to be involved. The 50 day EMA is just above there as well, so that’s something worth paying attention to as well.
The shooting star for the day suggests that we are going to see more sellers, but the fact that we struggling at the meager price of $0.06 shows just how little faith in Cardano the market has. In just 30 days, we have seen the market cut the price of Cardano roughly in half. This is at the same time that Bitcoin has been somewhat sideways, but after a major rally. This shows just how less desired Cardano is than many of the other larger cryptocurrency coins.
The play going forward
The obvious play going forward is shorting this thing anytime you get a chance. This is absolutely toxic, but there’s also the possibility of it being a “lottery ticket”, in case it find some type of widespread adoption. It has been developed by one of the cofounders of Ethereum, so it does have that going for it, but at this point nobody wants it and that’s going to be a problem if you try to sell it later.
As far as the lottery ticket is concerned, because it is so cheap you could buy Cardano down here and simply hold on to it on the hope that it does rally. Obviously, Cardano going to $1.00 would make for an absolutely massive gain for somebody who bought a thousand coins. That being said though, it’s the same thing is trading penny stocks, which is very dangerous to say the least. This is a coin that shows no signs of strength.