ADA/USD is testing short term highs in early trading and its ability to consolidate within its current price range may be a positive technical indictor.
ADA/USD is within sight of the 2.200000 juncture in early trading this morning. While short term resistance may be closer to 2.195000, the broad cryptocurrency market has the feel of sitting on a chair which may literally explode with volatility soon. The question is which direction the market will head. Without overstating the wave of sentiment within the digital asset sphere at this time, Bitcoin and Ethereum are near important long term highs and trading may remain exciting (and dangerous).
Behavioral sentiment within the ADA/USD remains rather polite for the moment, but how long will this continue? ADA/USD traded near a high of 2.295000 on the 20th of October and then faltered to a low of nearly 2.090000 on the 24th.
Having acknowledged the past handful of days, it is also wise to note that ADA/USD was trading near 3.100000 on the 2nd of September. This isn’t to say that Cardano will soon challenge this all-time value, only to point out that ADA/USD has some ground to climb before it can also be said to be over exuberant.
Short term resistance near the 2.205000 to 2.230000 must be given plenty of attention. If a steady stream of buying starts to percolate within Cardano and ADA/USD starts to make resistance levels look vulnerable, speculative wildfires could generate a sudden and quick move higher. Intriguingly the 2.300000 resistance mark for ADA/USD looks to be a critical inflection point and if it is surpassed Cardano could see a whirlwind of volatility erupt.
Yes, ADA/USD could certainly display bearish momentum. For speculators who want to try and look for short term reversals lower the 2.170000 mark may prove useful as a potential take profit for short term selling positions, but traders who want to go against the trend in ADA/USD and the broad cryptocurrency market are encouraged to use stop loss orders at all times.
ADA/USD has provided traders with a comfortable speculative landscape recently. However taking into consideration the explosive values being displayed by Cardano’s major counterparts, speculators should expect price action to see greater velocity within ADA/USD. If current support levels are able to be sustained it may prove worthwhile to pursue buying positions of ADA/USD with resistance levels being used as take profit targets.
Cardano Short Term Outlook:
Current Resistance: 2.207000
Current Support: 2.175000
High Target: 2.276000
Low Target: 2.118000