ADA/USD has produced a significant move higher in the past twenty four hours. What should get the attention of cryptocurrency speculators is that this bounce upwards has occurred when consolidation has been demonstrated by many other digital currencies. Yesterday’s move higher and today has been over twenty percent of the base value Cardano had only two days ago.
As of this writing, ADA/USD is continuing to move fast and traders need to remain alert. Speculative assets that are capable of moving higher with such rapid speed are also prone to drop rather dramatically. The question for speculators is if a large amount of profit taking will suddenly emerge within Cardano, or if the price of the digital currency can actually sustain its current value and continue to move higher.
Affirming technical support ratios after a twenty percent rise in value is a rather difficult task. Traders need to practice their risk-taking skills if they decide to speculate on ADA/USD wisely. Within fast market conditions, the use of limit orders is not only recommended; it is urged.
What may appeal to speculators regarding ADA/USD’s price action yesterday and today is the technical perception the cryptocurrency is now challenging early March values. While choosing support levels may be rather tricky for short-term traders, resistance levels are in plain sight.
In this morning’s rather fast trading conditions, ADA/USD came within shouting distance of 1.300000. On the 1st of March, ADA/USD actually traded near 1.330000. If these higher values can be challenged, exuberant speculators may set as their ultimate goal the lofty prices attained by ADA/USD in February when the cryptocurrency came within shouting distance of 1.500000.
The question speculators need to answer is why ADA/USD has suddenly seen such a strong bullish trend emerge. If the price action within Cardano is an indicator that the broad cryptocurrency market is about to break out of its two-day consolidation, which has been seen within many other digital currencies, it could prove a very worthwhile short-term indicator.
However, ADA/USD is speculative, and traders who want to pursue higher moves need to practice their risk management wisely. Looking for additional bullish momentum may prove to be an opportunistic position, but having effective stop loss orders working as protection too would be a good decision.
Cardano Short-Term Outlook:
Current Resistance: 1.276000
Current Support: 1.180000
High Target: 1.340000
Low Target: 1.066000
