ADA/USD will enter January with its long-term negative price trend intact. As of this writing, Cardano is near the 1.360000 ratio and continues to display signs of bearishness. Yes, ADA/USD was trading near the 1.600000 level as late as the 27th of December, but a reversal lower has put the cryptocurrency within sight of important support once again.
For a one-week stretch in the middle of December, ADA/USD continued to flirt with the 1.200000 level. While this price was able to hold, the lack of a sustained reversal higher may tempt short-term traders to believe the greater possibility for profits regarding risk reward scenarios are with selling wagers. If the 1.300000 level proves vulnerable near term, this could generate more nervousness. December’s downward slump in Cardano kept its negative trajectory intact which began in earnest the 1st of September immediately after all-time highs were touched slightly above the 3.000000 juncture.
The direction of ADA/USD has not been a one-way avenue, reversals higher do occur, but resistance levels have proven rather durable and are actually decreasing. The inability of ADA/USD to not penetrate late November values with its recent short-term run higher late December is not a positive signal. Sellers of ADA/USD may be suspicious of support levels below, and believe the cryptocurrency is approaching oversold territory. However, if the broad cryptocurrency market remain nervous, there is reason to suspect further selling within ADA/USD could be exhibited.
If the 1.300000 level proves weak as support and lower values are seen, this could create targeted selling which aims for depths below which were tested several times in the middle of December. Technically, aiming for the 1.200000 realm may be too far a stretch for short-term speculators, particularly if they are using leverage. However, quick hitting trades looking for the 1.310000 to 1.280000 realms below may prove worthwhile short term.
January may be another difficult month for ADA/USD if the broad cryptocurrency market stays nervous. Traders can certainly look for reversals higher, but they should also practice solid risk management and not be overly ambitious. Unless ADA/USD suddenly starts to build momentum upwards and this correlates with its major counterparts, Cardano simply may continue to trend downwards.
Cardano Outlook for December
Speculative price range for ADA/USD is 0.960000 to 1.940000.
Key support psychologically for ADA/USD may be the 1.290000 level. The value is not far away from current price action, but if it is traversed and prices are sustained below this juncture it could set off further nervous selling. Short term traders should certainly use take profit and stop loss orders, they should also use entry prices when initiating their positions to protect against unanticipated fills. If ADA/USD falters more and the 1.260000 level is tested, this could spark momentum towards the 1.200000 price again. If this lower support level is penetrated, then ADA/USD would be testing prices not seen since late July of 2021.
Reversals higher within ADA/USD do occur. Volatility remains a staple of Cardano and a move above the 1.400000 level could spark speculative buying. But until ADA/USD is able to penetrate the 1.600000 mark and maintain this higher level, it would be difficult to say Cardano has become bullish. Traders who are speculative buyers should be keen in the short term to look for quick hitting trades that are able to be cashed in when profits emerge.
The inability of ADA/USD to demonstrate a long lasting bullish trajectory the past few months should not be ignored. While it is possible a strong move higher could occur, traders may want to stay skeptical about the technical capabilities of a sky rocket upwards until important resistance is broken and sustained. Any move above the 1.600000 would be noteworthy and could prove intriguing for more bullish activity if it were to happen.
