Cardano Continues to Fall Apart

The next couple of months could determine where the next couple of years ago.

Cardano fell again on Friday to reach the $0.43 level. This is an area that was visited just a couple of weeks ago, and when you look at the chart there’s almost nothing that suggests you should be a buyer of Cardano anytime soon. In fact, it’s starting to look like Cardano may be one of those projects that is a serious threat of falling apart. While I do like Cardano in general, the reality is that this is a lot like the technology sector in the late 1990s; there are going to be players in the space that are going to disappear. At this point, we have asked that same question of Cardano.

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From a technical analysis standpoint, if you are short of Cardano, this is a beautiful downtrend. The 50-day EMA is currently sitting near the $0.72 level and is dropping at a nice sustainable pace. It should also be noted that it has separated quite nicely from the 200-day EMA, showing that the market most certainly should drop given enough time. That being said, if the market were to rally a bit from here, I believe that the $0.60 level is going to continue to offer resistance, and even if we break above there, the 50-day EMA will be a major problem.

I don’t like the idea of buying at this point, but I do recognize that eventually, Cardano could be a nice longer-term investment, assuming that it holds together. We are getting close to a point in time where a lot of these alternative coins are going to disappear, but there may be a few winners. Cardano certainly has a reasonable chance of being one of those winners, as there are some governmental cooperation factors to include, primarily in Africa.

That being said, this is a market that looks absolutely miserable, so if you are going to be a buyer, you have all the time in the world to get involved. If you are a trader, anytime this market pops just a bit, and especially near the $0.60 level, you have to get short. Furthermore, I would do so with leverage because this is about as bad of a chart as I have ever seen on a consistent basis. The next couple of months could determine where the next couple of years ago.