ADA/USD is hovering over the 81 cents price level as of this writing. The broad cryptocurrency market is being pounded by headwinds, but Cardano continues to face a stronger test than most digital assets as it traverses depths not seen since February of 2021. While many of the other major cryptocurrencies are flirting with support levels still from early last summer, ADA/USD faces a more difficult test regarding its sentiment.
This past weekend’s trading saw ADA/USD slip from a high of nearly 88 cents on the 5th of March to a low around 82 cents yesterday. As trading has started today, there has been no surge higher to really speak about and ADA/USD is moving around the vicinity above the 81 cents level. Speculators are likely aware Cardano traded near the 75 cents mark on the 24th of February. Technical charts are not just showing a bearish trend, but an ominous slide downward for ADA/USD.
Traders who remain optimistic about ADA/USD and believe it is oversold will need strong stomachs. Certainly Cardano can trade upwards, and reversals are a definite part of its daily landscape. However, the question regarding the capability of ADA/USD to sustain upwards momentum must be questioned. As long as the broad cryptocurrency market remains in a negative stance, Cardano seems unlikely to swim against this tide and produce a move of its own higher.
Yes, on the 1st of March ADA/USD was trading above the 1.00000000 level and this followed a week’s worth of upward momentum after the February 24th lows were produced. A purely optimistic speculator may want to look for a repeat of that price action, but the question is if and when a move upwards like that will be exhibited again. It will likely happen at some point, but negative sentiment within the broad cryptocurrency market since last week’s highs has caused a violent move downwards. Simply put ADA/USD has lost 20% of its value since last week. The near term seems to indicate more nervousness will persist.
Traders who want to sell ADA/USD cannot be faulted. While depths below 75 cents may feel like they are out of the question, speculators are reminded that Cardano was trading at 70 cents and lower in February of 2021. Tactical stop losses need to be used to guard against sudden reversals, and take profits should aim for realistic targets. If ADA/USD drops below the 80 cents juncture in the short term and sustains this value, it could set off additional selling by nervous Cardano speculators.
Cardano Short-Term Outlook
Current Resistance: 0.87300000
Current Support: 0.79910000
High Target: 0.93400000
Low Target: 0.71840000
