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.

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.

There’s nothing on this chart that looks remotely bullish.

Cardano has done very little over the last couple of weeks, as it has been hanging out just above the $0.45 level. This is a market that looks as if it is killing time until it decides what its next move is. The fact that we have sat in the same area for a little while does provide a little bit of comfort for those who were bullish on Cardano, but at the end of the day, the fact that we have not rallied it all should probably be the focus.

If we were to break down below the $0.45 level on a daily close, then I think Cardano has further to fall. Regardless, Cardano is going to struggle in this environment, as the crypto world itself is falling apart. There are a lot of projects out there that have absolutely no business being traded because they are never going to do anything. I’m not saying that about Cardano, but there is going to be a great reckoning over the next year or two, because we have reached the point as we did in 1999 with tech stocks.

Eventually, you have to turn some type of profit or actually be used for something other than a pet project. As things stand right now, crypto has a lot of promise but at the end of the day, it’s not overly useful the moment. Because of this, and the massive speculation that we had seen in some of the smallest coins, there is a lot of financial destruction that people will have to sit on top of before they can dip their toes back into the water. There have been a lot of people wiped out by the crypto meltdown, so it’s going to take some time to build that trust back up. However, if you are a longer-term believer in the Cardano ecosystem, and I certainly think there is something to be said about it, you should welcome these breakdowns because they will offer longer-term investing opportunities. As far as trading goes, the only thing you can do with crypto right now is short every rally that comes along. The 50-day EMA sits at the $0.60 level and is dropping toward the current price action. There’s nothing on this chart that looks remotely bullish.

I believe that anytime Cardano rallies, you need to be looking at it as an opportunity to start shorting again, as the trend is so firmly ensconced.

Cardano tried to rally a bit on Tuesday but gave back quite a bit of the gain. At this point, it looks as if the market is trying to threaten the $0.45 level underneath, which is an area that has been supportive multiple times. The $0.45 level has been important for a couple of weeks in a row, but I do think it’s only a matter of time before breaking through there. If we do slice there, then it’s likely to go looking to the $0.20 level after that.

The 50-day EMA sits above the $0.60 level and is sloping lower. It looks as if we are going to continue to see plenty of sellers on rallies, so I don’t have any interest in trying to get long. If we do break above the 50-day EMA, then we could recover to the $0.80 level, but it seems to be very unlikely to pick up that type of momentum while the rest of the crypto markets are so disastrous.

Furthermore, Cardano seems to have no real momentum going forward as far as completing some of the projects is concerned, and it’s taking a ton of time to make all of these things happen. Because of this, the market is likely to continue to get punished much more than many of the other projects out there, and at this point, there are a lot of questions as to whether or not Cardano is ever going to get it all together. Do not get me wrong, I believe that the Cardano project has a lot of potential, but at this point in time it’s not living up to it. Furthermore, money is not looking for speculative places to go to work, so Cardano is going to continue to suffer at that point. I believe that anytime Cardano rallies, you need to be looking at it as an opportunity to start shorting again, as the trend is so firmly ensconced. Furthermore, when you look at the chart, it is almost a textbook example of what a downtrend should look like. I believe $0.20 will be targeted over the next several weeks, and perhaps even lower than that. There are currently no crypto markets I’m willing to buy.

When there’s risk aversion, big money does not go into more speculative investments like Cardano or the rest of the crypto world.

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.

I do think that Cardano may have a future, but a lot of other smaller coins don’t.

Cardano rallied a bit on Monday, stabilizing right around the $0.50 level. That being said, crypto itself is in a lot of trouble and Cardano is not going to avoid that. We are in a strong downtrend and is difficult to imagine a scenario where things change rapidly. We are in fact in “crypto winter” when it comes to these altcoins. As long as that’s the case, unless something changes in the Cardano ecosystem that makes it head and shoulders above the rest, you can probably count on lower pricing.

Keep in mind that the rest of the crypto market pays close attention to Bitcoin and Ethereum. If both of those are struggling, these coins will not do very well unless it’s a specific case basis. At this point, it looks like both of those markets are trying to build a bit of a base, but the last time they attempted this, they shed 25% on the breakdown. If that happens, there’s absolutely no way that Cardano or other small markets are going to do well.

The $0.60 level above looks to be resistance, and it is probably worth noting that the 50-day EMA is racing toward that area as well. If you look at the action for the last couple of months, Cardano has paid close attention to the 50-day EMA, so I would venture to say there will probably be sellers in that general vicinity as well. Cardano seems to be finding a bit of support underneath at the $0.40 level, but there’s nothing particularly special about the $0.40 level that leads me to believe it will be better than any other level.

As far as buying is concerned, if you are a longer-term believer in the Cardano ecosystem, you should have plenty of opportunities to buy at lower prices. Perhaps “scaling in” might be the best strategy in that scenario, but you also have to be aware of the fact it could be a couple of years before crypto takes off again. You would need to see Bitcoin start to rally on a sustainable trajectory before others like Cardano follow along. Remember that this is a highly speculative investment, but it does have a lot of promise as far as its use-case scenario. Because of this, I do think that Cardano may have a future, but a lot of other smaller coins don’t.