ADA/USD: Solid Week of Results May Soon Produce Headwinds

After reaching a high of nearly 1.500000 on the 4th of July, ADA/USD has begun to experience slight selling pressure.

The past week of trading within ADA/USD has been mostly positive and, as of this morning, the cryptocurrency remains within the middle of its one-month price range. ADA/USD gained forcefully from the 2nd of July until the 4th. Cardano was near 1.280000 on the 2nd, but like the broad cryptocurrency market saw bullish momentum develop over the weekend.

As of this writing, ADA/USD is near the 1.450000 ratio and is moving in a rather fluid manner. ADA/USD continues to prove rather intriguing from a speculative vantage point because its volatility often seems to occur via reactions to other cryptocurrency trading. This morning’s trading has seen a flourish of selling and traders may believe headwinds will grow for ADA/USD in the short term.

The highs achieved this weekend near 1.500000 tested values not seen since the 18th of June. After producing the short-term positive trend over the weekend, the reversal lower yesterday touched the 1.370000 area. The ability of ADA/USD to generate quick volatile trading should not be lost on traders and the support levels reached yesterday could see another test of their durability. If current support near the 1.435000 to 1.430000 begins to look vulnerable, a test of lows produced on Monday is a legitimate perspective.

Resistance proved to be tough around the 1.500000 mark this weekend and this may prove to be a rather instinctive inflection point for ADA/USD. Short-term resistance near the 1.480000 may prove tough to attain today, and if it is not challenged, traders may continue to keep a bearish short-term perspective. The broad cryptocurrency market continues to display an inability to brush aside key mid-term resistance levels and, until this takes place, technical perceptions are likely to remain rather bearish.

Selling ADA/USD appears to be a rather logical perspective from a speculative standpoint. From a risk/reward scenario, resistance appears rather durable and may create sharp reversals if challenged. Support levels below do look tempting. Traders should remain cautious and use conservative amounts of leverage to guard against sudden spikes becoming expensive wagers. Negative technical sentiment may continue to create momentum and support levels below could be targeted and prove worthwhile if proper risk taking tactics are implemented.

Cardano Short-Term Outlook:

Current Resistance: 1.480000

Current Support: 1.430000

High Target: 1.529000

Low Target: 1.359000


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.