ADA/USD has fallen to critical support levels as the month of June is set to begin, and nervous sentiment remains a fixture in the crypto markets.
Cardano is trading below the 46 cents level as of this weekend’s writing. ADA/USD remains locked in a downwards trajectory and have produced insignificant reversals higher in the past week, as it mirrors the poor trading conditions in the broad cryptocurrency markets. Bullish speculators wagering on upside based on the belief that ADA/USD is vastly oversold are likely having their fortitude tested in rather distasteful ways.
The support levels ADA/USD are traversing appear fragile and if the 45 cents juncture is broken lower this could set off an additional round of selling in Cardano. On the 12th of May, ADA/USD saw a volatile amount of selling take Cardano below the 40 cents threshold. A reversal higher was produced and a climb to the 60 cents marks were attained on the 13th and 16th of May. However, incremental decreases in the value of ADA/USD have been strong, and its current price level is too close for comfort to the lows attained on the 12th of May.
Consolidation has been seen in the broad cryptocurrency markets the past couple of days, but nervous sentiment remains the key ingredient. The lack of a serious reversal higher and the notion that the long term bearish trend certainly remains on display, is likely causing traders to suspect additional selling pressure will be demonstrated. Speculative buyers seem to be in short supply and a rush of heroes who will suddenly propel ADA/USD to solid higher levels seems to be only wishful thinking.
Certainly ADA/USD is going to see reversals higher, but the question is how strong buying can possibly be under the present trading conditions. Early February 2021 prices are now being challenged and if technical bearish speculators prove they are strong, a break below the 45 and 44 cents junctures could spark the notion that lower depths could be found.
On the 3rd of September, 2021 ADA/USD was trading just below the 3.00000000 mark. The fall in value of Cardano since these apex highs is abundantly clear, and has likely hurt many speculators who have chosen to hold onto their positions long term. Day traders however have the opportunity to seek and take advantage of the negative bearish trend in ADA/USD. While some backers of Cardano may be right that the long term looks bright, this coming month of June is not exactly suggesting that bright skies are ahead for climbs upward that can be sustained.
Cardano Outlook for June
Speculative price range for ADA/USD is 0.33300000 to 0.66000000
ADA/USD remains locked into a negative bearish trend. Current price levels may appear cheap because of the value Cardano once exhibited, but for the moment sellers seem to outnumber buyers. If ADA/USD remains locked under the 50 cents ratio and the broad cryptocurrency market remains fragile, support levels may continue to be tested. As of this writing with the 45 cents juncture acting as support, speculators cannot be blamed for pursuing lower realms. If the 44 cents mark suddenly appears to be weak, price action could certainly take Cardano to prices seen the second week of May.
Ambitions even on the short selling side of the trading sphere should be kept realistic. Traders are urged to use risk management wisely at all times. The violent selloffs demonstrated the past couple of months may continue into June if behavioral sentiment remains weak and speculative buying cannot muster power, but there are no guarantees. If the 42 cents mark is broken in ADA/USD and prices are sustained near the 41 to 40 cents marks, this would not be a good sign for Cardano bullish positions.
Traders who choose to search for reversals higher based on the belief higher price action will be generated should keep their goals realistic. ADA/USD has had a difficult time climbing above the 50 cents mark the past few days, if this mark cannot be punctured higher it will be a negative sign. However if 50 cents is attained, traders should be willing to use take profit orders to cash in profits that emerge. The last time Cardano was above 60 cents was on the 15th of May. ADA/USD can certainly move higher, but for the moment its bearish trend remains in control of its market sentiment.