Since reaching its all-time high in early September, Cardano has incrementally decreased in value and its higher range is being sincerely challenged.
Having outperformed many of its major cryptocurrency counterparts in the past couple of months via the perspective of touching all-time highs in early September, Cardano is now being challenged by a bearish trend which is threatening important mid-term support. As of this morning, ADA/USD is near the 2.250000 juncture and this could prove to be an important fixture. If trading is sustained below this mark, it may signal additional tests of lower support could be seen relatively soon.
While ADA/USD does trade in correlation with the broad crypto market, it also has its own trajectory which needs to be studied technically, having proven it often works within a sphere of its own. While other major cryptocurrencies have tested important support the past few days, ADA/USD actually hit crucial support on the 22nd of September when it quickly traversed near the 1.900000 mark below. This low tested values not seen since the middle of August.
When looking at a three-month chart, it is clear the current value of ADA/USD is at an important juncture technically and, if current support falters, speculators may believe lower levels will be demonstrated. Having reached an apex of almost 3.100000 on the 2nd of September, ADA/USD has certainly seen a sell off like other major cryptocurrencies, but its lows remain within the upper tier of mid-term range. However, interpreting the moves of Cardano are open to perspective based on the bias of each speculator. ADA/USD is now trading below its highs from the middle of May when it hit a value of 2.450000 approximately.
While speculators may remain optimistic about Cardano’s prospects, it is also clearly being affected by nervous sentiment being generated in the broad cryptocurrency market. Close resistance near the 2.2900000 level should be monitored. If ADA/USD is not able to break above this juncture and sustain value over 3.330000 near term, this may be a bearish signal.
Speculators should be wary of sudden volatility in ADA/USD and use solid risk-taking tactics. Selling ADA/USD appears to a rather intriguing prospect short term, taking into consideration that support levels have proven rather vulnerable and important psychological junctures are within sight below which may act as a target for traders.
Cardano Short-Term Outlook
Current Resistance: 2.294000
Current Support: 2.226000
High Target: 2.385000
Low Target: 2.140100