ADA/USD has stumbled slightly the past few days of trading, but Cardano remains above an important psychological support level in early trading.
ADA/USD is trading above the 2.000000 level as of this writing and this ratio could prove to be an interesting lynchpin if it is not punctured lower in the short term. On the 14th and 15th of August, yes only a handful of days ago, ADA/USD was trading near the 2.250000 level. The last time Cardano had operated at those lofty heights previously was in the middle of May when ADA/USD was coming off of it all-time highs which challenged the 2.500000 juncture.
Trading volume in ADA/USD has been healthy the past few weeks and according to market capitalization reports Cardano is likely the third biggest cryptocurrency per value. ADA/USD offers speculators plenty of volatility and the fact that Cardano was trading only slightly above 1.000000 on the 20th of July should be contemplated. It needs to also be pointed out that the potential of quick gains via ADA/USD means that it can also result in fast losses.
Technically if the 2.000000 ratio proves it can be sustained and values across the broad cryptocurrency market hold in the short term, ADA/USD may see another leg upwards. The ability of ADA/USD to climb within a distant sight of May highs only a few days ago is quite an accomplishment. Speculators who were fortunate to have pursued long positions and went along for the ride higher may have cashed out some of their winnings the past couple of days.
This opens the door for consideration that if current support levels hold and trading volumes remain constant, that ADA/USD could be about to march higher again. Certainly Cardano is among the most volatile cryptocurrencies because of its ability to produce rather astounding changes in value from a percentage perspective. Traders need to use their risk management wisely.
Speculators who continue to feel ADA/USD has the potential to go higher should keep their eyes open on the 2.000000 to 1.980000 junctures today. If these price ratios remain consistent and ADA/USD doesn’t break lower in the coming hours it may be a signal additional buying will creep into the market. However, if ADA/USD falls below the 1.980000 mark and suddenly begins to challenge the 1.950000 level it could mean rather fast selling will build near term.
Cardano Short Term Outlook:
Current Resistance: 2.08100
Current Support: 1.984000
High Target: 2.227000
Low Target: 1.795000