After making highs near 1.400000 earlier this week, ADA/USD is now battling important resistance as traders consider their next moves.
ADA/USD is trading within ‘distant’ sight of the 1.300000 resistance level this morning, but it is still a far cry away from the highs it attained on the 26th of July when it tested the 1.400000 juncture. As of this writing, ADA/USD is trading near the 1.281500 level. Traders who have hoped for an additional spike upwards and a retest of highs seen on Tuesday may be growing frustrated if they are getting hit with overnight charges for carrying trading positions into the next day if they are holding onto long positions.
The broad cryptocurrency market has become alluring again to speculators with bullish appetite who have been waiting for reversals higher after the past few months which have seen an avalanche of declines. Cardano was certainly hit by bearish sentiment and, on the 20th of July, ADA/USD was hovering above the key psychological ratio of 1.000000. However, since hitting these lows, ADA/USD has correlated with the broad crypto market and demonstrated solid reversals higher.
The dilemma for short-term traders who are contemplating their technical charts is the worry that the power generated higher may take a breather. ADA/USD, like all other cryptocurrency assets, is a highly speculative endeavor and spikes are part of the landscape. Interestingly, in the past week of trading, transactional volumes did increase late last week and early this week. However, the high made on the 26th of July near the 1.400000 level has been met with a barrage of selling followed by choppy conditions the past couple of days.
The current value of ADA/USD is intriguing, because if the 1.290000 mark proves difficult to penetrate higher and the broad cryptocurrency market begins to stagnate also, bearish sentiment could arise and may cause skittish selling. Traders of Cardano need to monitor ADA/USD carefully and look at support junctures below too. If the 1.275000 mark begins to be tested and lower values near 1.271000 are challenged, there is reason to suspect that additional lows could be produced. Lows of 1.260000 were approached yesterday.
ADA/USD remains capable of displaying volatility. Yes, the market has shown signs of wanting to move higher the past week, but current support levels need to prove they are adequate. Buying ADA/USD near the 1.279000 to 1.280000 levels may prove to be enticing. Traders need to use limit orders, take profit and stop loss tactics in order to trade Cardano effectively.
Cardano Short-Term Outlook:
Current Resistance: 1.290000
Current Support: 1.271000
High Target: 1.356000
Low Target: 1.258000