ADA/USD is still being hammered within a bearish slump and its current price range is displaying values last sincerely tested in July of 2021. Technical traders who remain optimistic about Cardano in the short term may believe that ADA/USD has been oversold, but the ability of the cryptocurrency to make support levels look vulnerable the past week is a troubling sign.
Yesterday’s low of nearly 1.074000 challenged values last seen in July and calls into question technical support interpretations. While it can be said that prices near 1.050000 may look like adequate support, the acknowledgement that the 1.000000 is very close should not be ignored. After ADA/USD hit approximately 2.450000 in May of 2021 and then slumped along with the broad cryptocurrency market into late June, the 1.000000 worked as an important juncture.
Although Cardano has come close and traded slightly below the 1.00000 mark in May and June of 2021, the level has predominately acted like a buffer and has seemingly spurred on buying. The last time ADA/USD sincerely traded below the 1.000000 was in February of 2021. The all-time highs of ADA/USD which were touched in September when Cardano hit the 3.100000 height, shows the stark fall in value that has occurred the past handful of months.
ADA/USD has lost around 200.00 USD of value per coin since reaching the highs seen in early September and speculators who are anticipating a sudden reversal of fortune should be careful. While proponents of Cardano and its traders may have a solid point that ADA/USD is oversold, the current trading environment in the broad cryptocurrency market remains nervous. Timing a correct reversal can prove a costly endeavor if day trading perceptions fail to find the correct momentum.
Traders should manage their risk wisely in ADA/USD. Important psychological support is certainly within sight near 1.000000, but this doesn’t guarantee buyers will step in now. Speculators should remain cautious and perhaps pursue quick hitting trades with limited take profit targets. Overly ambitious trades should be reconsidered by day traders. If ADA/USD does manage to break through the 1.000000 below and sustain this lower value, this could be a dangerous bearish signal that additional selling could emerge.
Cardano Short Term Outlook:
Current Resistance: 1.227000
Current Support: 1.064000
High Target: 1.298000
Low Target: 0.955000
