Early this weekend, ADA/USD was trading near 1.180000, which clearly brought it within sight of the important 1.200000 technical resistance level, which has hindered an advance above this price level since early March. As Cardano declined in trading this morning, ADA/USD has sunk and begun to test the important 1.000000 threshold.
Speculators need to fully understand that the broad cryptocurrency market this morning is trading fast and, while this may create plenty of opportunities, it may also create dangerous conditions for those who are unprepared. If the 1.000000 juncture sees a sustained amount of trading below this mark, it could spur on negative reinforcement and create additional downside momentum which could test support levels not seen since the 23rd of February.
Traders who are anticipating further wild fluctuations with ADA/USD today and have the patience to wait out the storm taking place this morning might find more tranquil trading conditions to take advantage of in the aftermath. Speculators may want to wait for additional drawdowns towards support levels below to once again become buyers of ADA/USD.
Traders who feel that today’s downward drive is only a temporary reaction after short-term highs were made this weekend may be prepared to buy within the current price vicinity of ADA/USD near the 1.000000 level. However, speculators who are wagering within the value range being demonstrated should understand that the current price of ADA/USD may act as a springboard, which could produce worthwhile profitable results, but also cause damage to a trading account if the market goes in the wrong direction.
Sentiment in the cryptocurrency market appears to be fragile this morning. There certainly is the potential that selling conditions, which have been fast today, have been triggered by profit-taking, which may indicate that an additional wave of buyers may reemerge sooner rather than later.
While the broad cryptocurrency market has certainly enjoyed a bullish market, including ADA/USD, it should also be noted that technically Cardano has not firmly traded above the 1.200000 level since early March. Traders should be cautious with ADA/USD because the cryptocurrency remains volatile and capable of large percentage moves. If the 1.000000 level proves to be sustainable in the short term, ADA/USD may prove a worthwhile speculative buying opportunity, but traders need to have their risk management in place.
Cardano Short-Term Outlook:
Current Resistance: 1.070000
Current Support: 0.946000
High Target: 1.180000
Low Target: 0.883000
