ADA/USD has seen a significant amount of buying this weekend and has broken through short-term resistance levels, Cardano is within sight of one-month highs.
ADA/USD enters Monday’s trading having posted a solid gain over the weekend. On the 15th of January, ADA/USD was trading near the 1.240000 level, but the past two days have seen a solid amount of bullish action even as the broad cryptocurrency market struggles. The climb upwards by ADA/USD is not correlating to its major counterparts.
Short-term resistance levels have proven vulnerable and the current price of ADA/USD is near the 1.525000 mark as of this writing. The one-month high via technical charts for Cardano was almost 1.595000 on the 27th of December. After the late December price was displayed, ADA/USD began to slump once again and did hit a low of nearly 1.070000 on the 10th of January.
In many respects, ADA/USD was correlating to the broad cryptocurrency market during this time. ADA/USD has been within the grips of a strong bearish trend since early September. Cardano’s lows prices on the 10th of January was in line with many of the results from its major counterparts technically. However, the past couple of days have demonstrated a different story for ADA/USD. While the broad market did see some slight price recovery and reversed upwards partially last week, the past few days have once again seen selling enter the larger cryptocurrency landscape.
This has not happened for ADA/USD though, and the price is certainly within sight of important resistance. Influencers and proponents have been heard the past few days regarding Cardano. The short term surge in value of ADA/USD could have something to do with the expectation a new exchange called SundaeSwap will use Cardano blockchain protocols when it debuts supposedly on the 20th of January.
However, before a speculator begins to buy ADA/USD based on this notion, they should be cautious. It should be given consideration that ‘smart money’ has already entered the marketplace and may look to cash in some profits during the momentary exuberance, which will continue to make Cardano volatile.
Short-term traders are urged to use entry level orders for ADA/USD. Volatility has increased the past couple of days and while the bullish run upwards has generated attention, the broad cryptocurrency market remains rather sluggish technically. If a trader want to buy ADA/USD they cannot be blamed, but looking for quick hitting results using take profit orders is encouraged. Traders who believe ADA/USD has been overbought and will see its values reverse lower need to remain conservative too and use stop losses.
Cardano Short-Term Outlook
Current Resistance: 1.536000
Current Support: 1.487000
High Target: 1.649000
Low Target: 1.322000