ADA/USD has seen its value nosedive like other major cryptocurrencies in the past handful of days, and speculators who are wagering should remain cautious.
ADA/USD is trading slightly above 41 cents as of this writing. The widespread carnage in the cryptocurrency markets has created a lack of confidence that is testing the willpower of almost all participants in the digital asset world. The price of Cardano was above 76 cents on the 8th of May.
As ADA/USD moves lower and strong buyers remain in hiding, technical traders need to look at long term charts to consider potential problems (opportunities for those who want to remain thinking optimistically). One year charts will not do the trick for speculators at this point; five year charts should be gathered and considered. ADA/USD is now challenging prices seen in early February of 2021, if Cardano’s price stumbles slightly more it will be within January 2021 value levels with the blink of an eye.
As a point of reference to illustrate the speed ADA/USD is moving (downward), I have had to revise the price Cardano is trading in the opening paragraph two times already. If a trader chooses to wager within the cryptocurrency market today they should use entry price orders to make sure their fills meet expectations. Without the use of entry orders a trader may find that they are correct about direction, but the price is far below the expected fill due to the speed of price velocity which exists in the current conditions, which may create the need for other value targets.
Fast conditions are not about to go away. Yes, potentially there will be reversals upward in the broad cryptocurrency market which can be taken advantage of, but speculators betting on upside action should really consider that this may be described as spitting in the wind. The trend for the time being is not only bearish, but can be described as an avalanche. If ADA/USD breaks below the 40 cents level in the short term, values could potentially fall into the mid 30’s.
Risk taking tactics such as stop loss and take profits should certainly be used by speculators. The use of leverage should be carefully considered in a conservative way because the price action in ADA/USD, like the broad cryptocurrency market remains dynamic and dangerous. Selling into this storm may be tempting and proven correct, but it will take courage and quick reactions. Good luck.
Cardano Short-Term Outlook
Current Resistance: 0.43250000
Current Support: 0.40210000
High Target: 0.45850000
Low Target: 0.34960000