ADA/USD has traded lower again and has shown little ability to seriously challenge higher resistance realms as it hovers near crucial support.
ADA/USD is trading within a nervous lower realm, and both short- and mid-term ratios are clearly in sight. Speculative bullish fuel within the broad cryptocurrency market appears to be questionable, and yesterday’s delivery of a ‘full’ trading day after the holiday concluded failed to produce a ‘promising’ or long-lasting upside. Cardano was trading near a high 1.389000 on the 2nd of January and certainly has the capability of reversing its direction quickly.
Yet, technically, ADA/USD has continued to flirt with support levels much more than it has been able to sustain a serious run higher. Bullish traders who remain eternal optimists about the long-term perspective may be proven correct, but the long term is vastly different for day traders who are not looking to take a position and carry it a month, not even a week in most cases.
As of this writing, ADA/USD is trading near the 1.318000 level with a quick amount of value changes being demonstrated. If ADA/USD is able to break through resistance near the 1.322000 mark, this could spur on additional short-term buying, but traders may be skeptical of climbs as the broad cryptocurrency market remains under pressure. If support levels begin to face challenges and the 1.314000 mark begins to look soft and prices are sustained below, traders may believe the 1.311000 ratio is legitimate.
Volatility remains steadfast within ADA/USD and traders are encouraged not to become comfortable with perceived consolidation. If current support levels are maintained in Cardano and the broad cryptocurrency market shows an ability to maintain technical support levels, a reversal higher could certainly ensue for traders to pursue. However, momentum in ADA/USD doesn’t look positive in the short term and speculators may continue to try their luck by trying to wager on downward price action.
If ADA/USD reaches resistance levels and fails to sustain the higher realms, traders may want to place selling positions near the 1.323000 level as entry points to look for reversals lower. Stop loss orders should be used to guard against spikes higher which could develop. Technically the short reversals higher in recent trading in ADA/USD have generated sparks of selling pressure, and this may continue to be a highlight of Cardano’s trading landscaped near term.
Cardano Short-Term Outlook
Current Resistance: 1.322000
Current Support: 1.31100
High Target: 1.328000
Low Target: 1.278000
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