ADA/USD is trading near the 1.600000 level in early trading today, as the cryptocurrency continues to put up a rather impressive fight to maintain values within the middle of its mid-term price range. Technical traders who remain bullish with ADA/USD can clearly see Cardano is still within its May values and has not tested April prices with a sincere push. Yes, ADA/USD has seen flashes downward which have tested lows on the 19th and 23rd of May, but these spikes downward have produced solid rises in value.
The question suspicious bearish traders may now be asking is if these reversals higher after lows have been made are sustainable. The broad cryptocurrency market remains locked within short-term bearish sentiment, and this weekend’s price action did little to improve the mood. Technically, while ADA/USD looks healthy compared to other major cryptocurrencies which are testing March and February values, it can be argued by skeptics that it may be time for ADA/USD to erode in similar fashion.
On the 15th of May, ADA/USD was trading near record highs of roughly 2.460000. Like other cryptocurrencies, ADA/USD did prove it has the ability to cut its value in half and beyond, when it sank to depths near 1.000000 only four days later. Not only does this show that ADA/USD is not immune to the sentiment being generated in the broad cryptocurrency market, it also shows that Cardano is a volatile digital currency that speculators need to always be practicing risk management tactics with.
The junctures of 1.650000 to 1.700000 should be watched by traders; if these levels are punctured higher, it may mean that a shift in short-term sentiment is underway and could spur on additional speculative bullish action. However, if ADA/USD is not able to puncture the marks of 1.63000 to 1.65000, this may mean that resistance is still strong and another leg down could develop sooner rather than later.
Taking into consideration short-term technical and behavioral sentiment ,traders may want to remain bearish regarding their outlooks for ADA/USD. It is certainly a speculative wager, but looking for more selling momentum to develop and a test of support near the 1.580000 to 1.550000 values appears to be a logical speculative decision.
Cardano Short-Term Outlook:
Current Resistance: 1.620000
Current Support: 1.570000
High Target: 1.670000
Low Target: 1.336000
