ADA/USD has seen a sharp loss of value since early last week and is now perched above crucial mid-term support, which creates tough decisions for speculators.
ADA/USD is trading near the 1.850000 ratio in early trading this morning as it has lost additional value within a sudden bearish cycle which has emerged. On the 9th of November, ADA/USD was trading near the 2.390000 vicinity and actually testing important highs last seen in late September. Cardano has been correlating well with its major counterparts, and the developing reversal lower and tests of crucial support levels mirrors what is going on with other major cryptocurrencies.
However, unlike Ethereum and Bitcoin, ADA/USD has not exactly traded within the same technical sentiment. ADA/USD made its all-time high in early September, while ETH/USD and BTC/USD have been testing record heights within the past week-and-a-half. The current price range of Cardano has it near vital mid-term support levels and if the 1.770000 mark falters, ADA/USD could be confronted with a challenge to the 1.670000 ratio, which would put it within sight of levels since in second week of August and could prove to be very dangerous.
Speculators within ADA/USD are now confronted with a difficult decision. The broad cryptocurrency market has seen lower reversals certainly take place the past week and price velocity has increased in a negative manner the past couple of days. As lows are being tested there might be a natural inclination to look for reversals higher. However, the trend within ADA/USD has been poor and when six month charts are given perspective technically, Cardano actually looks rather weak.
If ADA/USD is able to sustain its current value and fight off support levels which are nearby, a potential move higher could ensue. Bullish speculators who want to aim for nearby resistance around the 1.880000 to 1.920000 marks could be making a worthwhile speculative wager, but it will be important not to be overly ambitious and the use of take profit and stop loss orders is highly encouraged.
There is no doubt ADA/USD could traverse higher and produce a sudden buying storm. Yet, technically Cardano is actually within sight of important support. Cautious traders who believe further weakness will develop and ADA/USD is within a selling cycle which may continue to find momentum, may want to aim for close support levels as targets if they want to sell. The 1.800000 to 1.775000 marks could be tested near term.
Cardano Short-Term Outlook
Current Resistance: 1.920000
Current Support: 1.775000
High Target: 2.148000
Low Target: 1.673000