ADA/USD fell to a low around the 1.285000 level yesterday, but did manage to stiffen and begin to create a reversal towards the 1.400000 ratio. ADA/USD fell to around the 1.330000 mark within a short period, and then a momentary spike upwards took Cardano to the 1.380000 juncture, but this short-term high vanished and ADA/USD essentially moved back near 1.3500000 in short order. As of this writing, ADA/USD is trading within sight of the 1.350000 mark, and choppy conditions are prevailing.
Technically, ADA/USD remains within the lower depths of its mid-term range; this continues to make for nervous short-term trading conditions as speculators try to decipher direction. The broad cryptocurrency market was able to produce gains early this week, but started to run into headwinds yesterday. Speculators within Cardano are strongly advised to use strict limit orders when they enter the market, to protect against sudden spikes which can lead to price fills that were not planned for and uncomfortable trading when objectives have to be rearranged.
After reaching a high of 1.420000 on the 29th of June, ADA/USD has seen incremental lower values develop. However, Cardano has a habit of producing quick choppy conditions which need to be managed with solid take-profit and stop-loss risk-taking tactics. As ADA/USD remains within the lower depths of its mid-term range, traders may continue to have negative sentiment regarding the short-term prospects for the cryptocurrency.
If support near the 1.331000 becomes vulnerable, traders could not be faulted for targeting the 1.320000 to 1.310000 junctures below. Short-term bearish traders may be proven to have the correct perspective regarding Cardano’s moves lower, but they should not be overly greedy because ADA/USD can reverse higher with force. It is tempting to aim for lower depths and use a significant amount of leverage, but this could prove an expensive wager if ADA/USD suddenly creates a leg up.
ADA/USD appears to remain within the grips of bearish sentiment. Until Cardano can break above the 1.390000 to 1.400000 junctures and sustain values above, bullish sentiment may remain rather tame. Yes, bullish traders can buy near current support levels and try to cash out profits as resistance comes into focus. However, the trend within ADA/USD continues to look negative technically in the short term and may favor sellers.
Cardano Short-Term Outlook:
Current Resistance: 1.370000
Current Support: 1.331800
High Target: 1.396000
Low Target: 1.283300
