Cardano has surged higher since the 19th of August and its ability to stay near its record all-time values may entice more speculation.
ADA/USD, as of this writing, is near the 2.800000 vicinity as it hovers within sight of its record high prices which were touched on the 23rd of August near the 2.970000 ratio. Cardano is now the third highest-rated cryptocurrency regarding market capitalization and it has been added to the Coinbase exchange which has likely caused improved visibility. ADA/USD has consolidated the past few days of trading like many of the major cryptocurrencies, but its ability to swim within record values is a difference maker.
ADA/USD can produce volatility like all cryptocurrencies. The ability of Cardano to add nearly 200% of value compared to its lows on the 20th of July when it traversed barely above 1.000000 should be taken into consideration. ADA/USD has not only recovered, but it has also surpassed the expectations of optimistic speculators who have been fortunate enough to be pursuing buying positions.
The 3.000000 ratio now appears to be the next roadblock for ADA/USD regarding upwards momentum. While Cardano certainly touched highs one week ago, the past handful of days has produced consolidated trading and some speculators may be growing anxious as they anticipate the next wave of volatility from ADA/USD. Short-term resistance looks to be around the 2.800000 to 2.850000 levels, and if these marks can be challenged and values are able to suddenly trade above these ratios, it could be a solid sign that additional bullish momentum will develop.
Support levels are also rather nearby, and the 1.690000 mark looks rather adequate, but if it fails to hold back selling then ADA/USD could see a quick test of the 1.600000 to 1.550000 junctures. After reaching all-time highs on the 23rd of August, ADA/USD did sink to around the 2.440000 level on the 26th of August.
The broad cryptocurrency market has produced solid sentiment in the month of August. While many cryptocurrencies have consolidated the past week, what is intriguing is the ability many of them have had to consolidate within their loftier heights short term. ADA/USD may prove to be a worthwhile buying opportunity on small reversals lower that come within current support levels on the notion a reversal higher will be produced.
Cardano Short-Term Outlook:
Current Resistance: 2.841000
Current Support: 1.690000
High Target: 2.980000
Low Target: 2.430000