ADA/USD: Downward Trend in Cardano May Attract Speculation

Robert Petrucci

ADA/USD has continued to produce a rather demonstrative bearish trend, even as many other major counterparts have started to become optimistic again.

ADA/USD is near important mid-term support. Cardano is hovering near the 2.095000 vicinity and if it breaks this support level it could find itself under further suspicion by bearish speculators, who may believe the incremental trend lower is continuing to aim for the 2.000000 mark which was last traversed in the third week of July.

However, fans of Cardano, of which there remains a rather strong legion, may be looking at the current price of ADA/USD and believe its downward trend has been overdone.  As some of its major counterparts in the broad cryptocurrency market, namely Bitcoin and Ethereum, have turned in positive performances recently, ADA/USD has not been able to escape its technical trend lower. Speculative admirers may be tempted to actually wager against the current trend while contemplating early September record prices.

On the 7th of September, ADA/USD traded near the 2.380000 level, but has run into a consistent wave of selling pressure. In early trading this morning, selling has resumed and the value of ADA/USD is testing important short-term support. On the 11th of October, Cardano was trading near the 2.065000 ratio and was able to reverse slightly higher, but after hitting a high of nearly 2.250000 on the 15th another few steps lower have obviously occurred.

Speculatively, ADA/USD is in a precarious position because of the results in the broad cryptocurrency market. Optimistic traders who believe current support levels will prove durable within the current realms near 2.0950000 may be tempted to look for upside action. Solid stop loss orders can be placed near the 2.085000 area as protection, particularly if a cautious amount of leverage is being used.

USD/ADA has not produced a huge amount of volatility the past few days and its rather tranquil trading may prove inviting. For traders who believe ADA/USD will continue to trend lower, stop loss ratios near the 2.100000 level which is nearby could prove a legitimate tool, because if Cardano breaks above 2.100000, it could build momentum higher quickly. However, if a downward stretch does continue, there is reason to suspect the 2.070000 level could be targeted by sellers.

Cardano Short-Term Outlook

Current Resistance: 2.106000

Current Support: 2.092000

High Target: 2.198000

Low Target: 1.963000

ADA/USD

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.

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