Tether, as the premier stable coin, provides an intriguing speculative landscape for experienced traders. Having gotten its legal questions out of the way which were shadowing Tether for a while, via its settlement with New York State, USDT/USD can be looked at with short-term and long-term perspectives with relative comfort.
The 1.0000 mark remains the ultimate trading barometer for USDT/USD, but the digital currency seldom navigates this value only. Instead, it trades slightly above or below the price depending on prevailing sentiment and its utilitarian ability in the cryptocurrency world as a basis for transactions. In early trading today, USDT/USD traversed slightly lower from its current short-term price range and touched the 1.0005 mark and promptly moved higher.
Traders need to understand that the volume within USDT/USD is not huge and patience is required to have values move in the direction desired. Speculating on USDT/USD also needs the ability to understand the trading parameters of your chosen broker. If you are taking a position in USDT/USD it may not be possible to hit your target in one day, even if it is incremental, which means you may have to pay a carrying charge to hold a position overnight.
Therefore, looking for small moves within USDT/USD is the best option and the use of limit orders is vital to get in and out of trades. Short-term traders who know how to use their risk management tools have an advantage when trading Tether.
From a technical viewpoint, and taking into consideration the overall strong nature of the cryptocurrency market, USDT/USD continues to look like a potential buying opportunity when it approaches the 1.0000 mark. In fact, speculators who are able to use limit orders and buy if the 1.0005 support level is touched in the short term may find this trade worthwhile.
Now that the storm clouds have lifted from Tether, traders in the near term can be more comfortable and focus on value instead of legal questions for USDT/USD. Short term, USDT/USD looks like an opportunity for speculators who are alert, can tactically implement their positions patiently and target support junctures as a way to buy Tether.
Tether Short-Term Outlook:
Current Resistance: 1.0012
Current Support: 1.0005
High Target: 1.0014
Low Target: 1.0001
