ADA/USD is now traversing values it has not fully seen in over one year of trading, and its technical trend remains troubling for speculators hoping for a reversal.
ADA/USD is set to begin the month of March near long term lows. ADA/USD is trading near the 0.880000 price as of this writing and it is testing support levels from February 2021, that is not a misprint, the value of Cardano has broken through very important support barriers. Influencers may be proven correct eventually that ADA/USD is vastly oversold and is a screaming buy. But short term speculators need to carefully consider the trading landscape, and wonder just how low Cardano can fall.
ADA/USD remains the 7th largest cryptocurrency regarding its market capitalization. However the negative path that Cardano is enduring has put its value within a price range that can only be defined as dangerous. Yes it may prove to be a solid buying opportunity for speculators who can purchase ADA/USD and hold onto it over a long period of time, but short term wagers are an entirely different matter. Risk taking tactics by traders inclined to bet against its downward momentum need to practice diligent stop losses.
Since reaching an all-time high over 3.000000 in the first week of September, ADA/USD has effectively fallen like a stone. To put it into perspective Cardano has lost more than two/thirds of its value in less than a half year’s timeframe.
Now ADA/USD is within a price ratio that has little in the way of long term technical support ratios. Except to say that its current price levels were last seen when it was within the grasp of an over exuberant run higher which occurred in February 2021. Yes, a low below 0.750000 was seen only a handful of days ago and it has reversed higher since then, but ADA/USD is not out of the woods yet and still remains in dangerous depths.
Let there be no doubt proponents of ADA/USD will be heard proclaiming the merits of Cardano because it looks cheap. Traders need to distinguish between the outlooks of ADA/USD influencers who are long term backers compared to short term speculative elements. Nervous trading conditions remain strong and if the broad cryptocurrency market falters more, there is reason to suspect ADA/USD could retest lows seen on the 24th of February.
Cardano Outlook for March:
Speculative price range for ADA/USD is 0.620000 to 1.330000.
Support for ADA/USD appears fragile and if the 0.870000 barrier is proven vulnerable short term, the 0.860000 and 0.850000 levels could be tested easily again. While perception via traders may feel like current support levels look attractive as places to ignite long positions and look for upside momentum, speculators may be lurking that continue to aim for downside. If the 0.850000 fails to hold ground, then there is little doubt if Cardano is caught in another negative wave downward that lower targets may be the goal of short sellers.
The low reached only a handful of days ago may appear to be the greatest depth ADA/USD can traverse, but speculators who have experience should know that there are no guarantees. If ADA/USD were to actually move within sight of the 0.750000 ratio again this would be a dangerous signal for Cardano and could indicate another leg down should be expected. While ADA/USD may feel oversold at such depths, prices lower are not outside the realm of possibility.
Speculators who want to bet against the prevailing trend and look for upside cannot be faulted. However, wagers should carry short term targets that cash out winnings relatively quickly and not be overly ambitious. Day traders may not be able to carry trades overnight and may not be able to cover the costs of seeking long term positions of ADA/USD. If the 0.900000 ratio is hit and values can be sustained over this mark, positive momentum may continue to build. If the broad cryptocurrency market turns positive and the 0.9500000 level is hit, some traders may suspect the 1.000000 is a natural goal for their wagers. Values sustained above the 1.000000 would be a positive development in Cardano.
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