Once the third biggest cryptocurrency, Cardano‘s recent performance turned out to be far below expectations, to say the least. As the month of November is nearly over and so is 2021, looking at the market doesn’t reveal a rosy picture for Cardano, in fact far from it.
To choose or not to choose Cardano?
Cardano has become the most unpredictable asset in the market at the moment as price action, investor behavior, and network performance all happen to indicate different signs.
Firstly, ADA finally rejected a bounce off of its almost month-long support of $1.9 and fell through, 3 days ago, during which it witnessed a 12.2% fall. Trading at $1.6, the altcoin is now at August levels. This also caused the long-standing support of 200 Simple Moving Averages (Orange SMA) to flip into resistance which now turns ADA into absolute bearish.
Cardano price action | Source: TradingView – AMBCrypto
This is also reflected by the net flows of the asset. This week Cardano was the most underwhelming performer compared to other altcoins as it registered $2.1 million in outflows. These figures check out, as on an average, for the last 10 days, more than 100 million ADA is being sold daily.
Cardano registers outflows | Source: CoinShares
Now, this is where it gets interesting. Looking at the price movement investors’ haste makes sense…