ADA/USD: Slump in Cardano Could Create Test of Mid-Term Lows

Robert Petrucci

ADA/USD has slumped to short-term lows as the broad cryptocurrency market continues to battle negative headwinds.

As of this writing, ADA/USD is trading near the 1.315000 juncture and appears to have a fight on its hands. In fact, ADA/USD is near important support hovering close to ratios not sincerely tested since late June. Cardano has the capability of moving quickly, and an early low this morning, which was within the vicinity of 1.285000, should serve as a warning.

The broad cryptocurrency market is battling negative headwinds again as selling pressure seeming has wrestled control in the short term. While ADA/USD has certainly enjoyed plenty of positive days in the sun, its price action since the 4th of July has progressively diminished. A high of nearly 1.450000 was seen in early July, but the trend since this high has incrementally declined.

It needs to be remembered that ADA/USD was trading near 2.300000 in the middle of May. Like many other cryptocurrencies, Cardano has seen its value nearly halved in many respects since accomplishing those lofty heights. However, what should intrigue bearish speculators is that ADA/USD is still valued nears ratios it has tested on various occasion the past five months. This price action has obviously been delivered with a whirlwind of volatility to the upside followed by breathtaking declines.

The interesting part of the current price vicinity for ADA/USD is that it remains above its extreme lows by a healthy margin. In late April, late May and late June, ADA/USD did see plunges towards the 1.000000 mark, which were followed by strong reversals higher. Bearish speculators should not be overly ambitious, but taking into consideration the past track record of ADA/USD to fall to lower prices, they may be inclined to pursue additional downward momentum.

ADA/USD remains extremely volatile and has a habit of not correlating with other cryptocurrencies on occasion. However, the negative winds that are blowing across the broad digital currency market should not be disregarded. Selling ADA/USD on slight moves higher might prove a worthwhile wager for traders who want to use limit orders, and then pursue the potential of bearish momentum to continue. If the 1.300000 level sees a sincere test and begins to be vulnerable traders may believe lower values will be seen sooner rather than later in Cardano.

Cardano Short-Term Outlook:

Current Resistance: 1.325000

Current Support: 1.281000

High Target: 1.383000

Low Target: 1.237000

ADA/USD

Robert Petrucci
Robert Petrucci has worked in the Forex, commodity, and financial profession since 1993. Important aspects of his work involve risk analysis and advisory services. As an advisor in a Family Office he maintains a conservative approach for wealth management and investments. Robert also works in private finance with investors and companies delivering financial and management services.

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