ADA/USD may have speculators sitting on the edges of their seats early this morning. After testing the 1.24750000 mark on the 4th of April and coming within sight of very important resistance levels last sincerely traded in abundance around the 7th of February, Cardano has taken a detour lower. ADA/USD saw its selloff build additional momentum in early trading today when it busted through the 1.05000000 level and tested the 1.03810000 ratio briefly.
However since hitting lows this morning which were last seen on the 23rd of March, ADA/USD has held firm and actually reversed slightly higher. The current price of Cardano is trading near the 1.08800000 mark and appears to be steady for the moment. The broad cryptocurrency market has also taken on a negative tone the past couple of days. Traders will have to decide if this is a temporary downturn being spurred on by some residual nervousness, profit taking, or an actual indicator more bearish trajectory will be witnessed near term.
ADA/USD remains staunchly within sight of it highs when looking at a one month chart. While the distance is not entirely close, the 1.25000000 juncture which was tested but not punctured from the 28th of March until the 4th of April may still attract optimistic bullish traders. A belief that the sudden downturn in ADA/USD produced the past few days of trading may be a natural reaction to highs being enjoyed again is not farfetched. If Cardano can consolidate in its current price vicinity this may attract the attention of speculators.
Certainly support ratios near the 1.0700000 mark should be watched, and if it falters and a retest of lows seen early this morning reemerges, this would be a negative short term signal. But if the 1.0850000 mark can prove durable short term and trading doesn’t go much lower than this target, then buyers may feel compelled to step in again and search for additional reversals higher.
After suffering a long bearish trend, traders of ADA/USD cannot be blamed for being cautious and they should be. However, Cardano has seen a rather solid bullish trend emerge since the middle of March, and its selloff the past couple of days may prove to be a temporary setback based on profit taking by short term speculators. Stop losses and conservative leverage should be used, because volatility may be abundant in the near term.
Cardano Short-Term Outlook
Current Resistance: 1.08930000
Current Support: 1.07250000
High Target: 1.13520000
Low Target: 1.02210000
