After suffering a decline and nearly touching 1.060000 this weekend, ADA/USD has rebounded higher and is again within a price range that will intrigue technical traders. As of this writing, Cardano is near the 1.600000 level and is hovering between potentially close support and resistance levels.
While the broad cryptocurrency market has certainly experienced a harsh wave of bearish sentiment the past week-and-a-half, ADA/USD may be one of the few digital currencies which can justifiably still say it is maintaining a bullish stance. Beauty is in the eye of the beholder and certainly this weekend’s plunge to lower depths has to be given consideration. The lower spike touched mid-term support levels.
However, the ability of ADA/USD to climb higher in the past day should be looked at carefully. Yes, other cryptocurrencies have also reversed higher the past twenty-four hours, but ADA/USD is one of the few major cryptocurrencies which has been able to climb back into the middle of its price range when a six-month chart is used to gauge technical considerations. While many other major cryptocurrencies are within shouting distance of vital support, ADA/USD is actually still trading within a spectrum that can justifiably be argued as a positive mode.
From a risk/reward perspective, traders will have to look at technical charts and make a decision where the greatest amount of movement short term can occur for ADA/USD. This is where things become tricky for Cardano speculators: if ADA/USD is still within the higher elements of its mid-term range and the broad cryptocurrency market remains nervous, this could mean that another fall could be demonstrated. It should be remembered that ADA/USD was trading at all-time highs of nearly 2.460000 on the 16th of May.
ADA/USD is a volatile cryptocurrency which has displayed strong bullish momentum up until almost ten days ago. However, the ability of Cardano to drop from nearly 2.460000 on the 16th of May to almost 1.060000 this past weekend cannot be understated.
Speculators within ADA/USD need to be ready for monster moves. This doesn’t mean they are guaranteed to happen, but traders need to be ready for the potential of spikes emerging. Technical traders who still believe that more bearish sentiment will be displayed may want to attempt selling positions of ADA/USD when reversals higher emerge and come within sight of resistance. It is a speculative wager and traders need to have stop-losses in place to protect their positions.
Cardano Short-Term Outlook:
Current Resistance: 1.610000
Current Support: 1.547000
High Target: 1.658300
Low Target: 1.460000
