Cardano has proven that record values are still being produced in the broad cryptocurrency market, even as many of its major counterparts have struggled the past handful of days. ADA/USD launched to new record highs over the weekend when it traded near 2.480000, but has reversed lower and is now near the 2.100000 vicinity as fast conditions remain prevalent.
It should be remembered that as recently as the 13th of May, ADA/USD was trading near support of 1.600000 before it found another speculative ignition twitch turned on. Traders must understand that moves of such magnitude in one direction mean that moves in the opposite direction can happen just as quickly. ADA/USD’s ability to achieve all-time highs this past weekend may have also gotten the attention of speculators who are skeptical of this outlier, meaning that Cardano skyrocketed as other major cryptocurrencies struggled over the weekend.
Technically, it appears the move in ADA/USD was very abrupt. However, some reports indicate that ADA/USD may have seen its price fueled because its blockchain is viewed as more environmentally friendly compared to many of its counterparts regarding energy usage. Bitcoin has faced some criticism the past week regarding the amount of electricity it takes to create and maintain its blockchain infrastructure.
While occasional and devastating price pressure in the broad cryptocurrency market is certainly a part of its speculative nature, the ability of ADA/USD to sustain its gains should be watched closely. If ADA/USD is able to maintain its value above the juncture of 2.060000, it could signify that speculative short-term interest in Cardano is legitimate, even as other cryptocurrencies are struggling. After the massive rise in value in ADA/USD and all-time highs, a bit of profit-taking should be expected.
ADA/USD should be watched closely, because if it continues to outperform the broad cryptocurrency market short term, it could be a bullish signal for additional moves upwards. Having broken the 2.000000 ratio this weekend, if ADA/USD is able to sustain price value over this level, speculators who are willing to wager in a volatile trading landscape may be tempted to see if nearby resistance levels are worth targeting.
Cardano Short-Term Outlook:
Current Resistance: 2.173000
Current Support: 2.060000
High Target: 2.340000
Low Target: 1.890000
