ADA/USD reached a solid short-term high early yesterday, but then saw a reversal lower demonstrated which sets the table for an intriguing day ahead.
ADA/USD is slightly above the 1.18100000 level as of this writing and yesterday’s early highs in Cardano saw a mark of nearly 1.2633000 flirted with briefly. However, after hitting the high water marks which came within sight of values last seen on the 20th of January, ADA/USD retreated. It should be remembered that ADA/USD was trading fractionally higher than only 92 cents on the 22nd of January.
ADA/USD gains since the lows of January until now are more than 25%, which is not a bad outcome if a bullish trader was able to buy near the lows. However, claims of getting in at lows and selling at highs are harder to prove than simply say. Timing the markets at apex lows and highs remains a dangerous temptation for traders and one that can often prove expensive. It is frequently much better to find a solid trend and take advantage of the price movements and not be overly ambitious regarding targets.
If ADA/US is able to climb above the 1.20000000 mark near term and exhibits a capability to sustain strength it may signal another bullish leg higher can be achieved. Traders need to understand though that ADA/USD moves quickly and its ability to produce volatility needs to be captured using entry price orders and practicing solid risk management. If the 1.20000000 is broken higher, trader may aim for yesterday’s highs, but placing take profit orders near the 1.22000000 juncture could be worthwhile too.
If ADA/USD is not able to sustain its current price level and drops below the 1.18100000 level, traders could become nervous again and believe lows seen only yesterday are potential selling targets. If the 1.16000000 level proves vulnerable and the broad cryptocurrency market continues to reverse slightly lower, the prospect of targeting the 1.14550000 mark as a take profit on a selling order could be a potentially worthwhile wager.
Only three days ago ADA/USD was trading near the 1.10000000 level. This juncture could prove to be a significant level if it is challenged again, if proven vulnerable and Cardano drops below this ratio, speculators may believe the one dollar mark will again be tested.
Cardano Short-Term Outlook
Current Resistance: 1.23130000
Current Support: 1.16120000
High Target: 1.28100000
Low Target: 1.09080000
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