ADA/USD finds itself under short-term pressure as it trades within the lower band of its current range.
ADA/USD, as of this writing, is trading slightly above important short-term lows. Cardano, interestingly enough, remains rather highly valued when it is correlated to many other cryptocurrencies. ADA/USD is still entrenched within a price range that is testing May values. Yes, ADA/USD is traversing important lower depths, but it has not broken below its April price band, while many cryptocurrencies are battling lower prices from March and February.
That technical feature can be looked at in two ways by speculators. Traders may believe that the ability of Cardano to hold onto the upper part of its range while not testing highs and still maintain the perception that strength exists is a positive signal for future bullish moves. On the other hand, skeptics who feel that ADA/USD has not suffered the slings and arrows that many of the other major cryptocurrencies have endured may be an indicator that worse days are ahead.
Since the beginning of June, ADA/USD has turned in a rather consistent display of testing support, puncturing values below, but then reversing upwards. However, the reversals higher since the start of June have been incrementally decreasing. This may be the special ingredient that technical traders need to make their decisions.
Sentiment within the broad cryptocurrency market continues to radiate fragility. While ADA/USD and its major counterparts have certainly demonstrated an ability to rise in value and give bullish speculators a glimpse of higher moves, the trend of Cardano can still be considered negative. Yesterday, a spike downwards struck a low of nearly 1.400000, and was followed by a move upwards to a price of nearly 1.59000.
Choppy conditions have persisted the past day in ADA/USD and it is traversing important short-term support now. If the junctures of 1.560000 to 1.550000 begin to look vulnerable and are penetrated lower, traders may want to latch onto the momentum and continue to sell ADA/USD and pursue support with a target in mind of 1.530000.
ADA/USD can certainly produce swift volatility. Support and resistance levels being broken is common in Cardano, and its sudden volatility makes it an attractive wager for some who can tolerate its quick conditions. Traders may want to continue to pursue bearish momentum in ADA/USD. Speculators are advised to use adequate risk management and not over-leverage their positions while wagers on short positions.
Cardano Short-Term Outlook:
Current Resistance: 1.607000
Current Support: 1.556000
High Target: 1.658000
Low Target: 1.530000