ADA/USD will enter January with its long-term negative price trend intact. As of this writing, Cardano is near the 1.360000 ratio and continues to display signs of bearishness. Yes, ADA/USD was trading near the 1.600000 level as late as the 27th of December, but a reversal lower has put the cryptocurrency within sight of important support once again.
For a one-week stretch in the middle of December, ADA/USD continued to flirt with the 1.200000 level. While this price was able to hold, the lack of a sustained reversal higher may tempt short-term traders to believe the greater possibility for profits regarding risk reward scenarios are with selling wagers. If the 1.300000 level proves vulnerable near term, this could generate more nervousness. December’s downward slump in Cardano kept its negative trajectory intact which began in earnest the 1st of September immediately after all-time highs were touched slightly above the 3.000000 juncture.
The direction of ADA/USD has not been a one-way avenue, reversals higher do occur, but resistance levels have proven rather durable and are actually decreasing. The inability of ADA/USD to not penetrate late November values with its recent short-term run higher late December is not a positive signal. Sellers of ADA/USD may be suspicious of support levels below, and believe the cryptocurrency is approaching oversold territory. However, if the broad cryptocurrency market remain nervous, there is reason to suspect further selling within ADA/USD could be exhibited.
If the 1.300000 level proves weak as support and lower values are seen, this could create targeted selling which aims for depths below which were tested several times in the middle of December. Technically, aiming for the 1.200000 realm may be too far a stretch for short-term speculators, particularly if they are using leverage. However, quick hitting trades looking for the 1.310000 to 1.280000 realms below may prove worthwhile short term.
January may be another difficult month for ADA/USD if the broad cryptocurrency market stays nervous. Traders can certainly look for reversals higher, but they should also practice solid risk management and not be overly ambitious. Unless ADA/USD suddenly starts to build momentum upwards and this correlates with its major counterparts, Cardano simply may continue to trend downwards.
For a one-week stretch in the middle of December, ADA/USD continued to flirt with the 1.200000 level. While this price was able to hold, the lack of a sustained reversal higher may tempt short-term traders to believe the greater possibility for profits regarding risk reward scenarios are with selling wagers. If the 1.300000 level proves vulnerable near term, this could generate more nervousness. December’s downward slump in Cardano kept its negative trajectory intact which began in earnest the 1st of September immediately after all-time highs were touched slightly above the 3.000000 juncture.
The direction of ADA/USD has not been a one-way avenue, reversals higher do occur, but resistance levels have proven rather durable and are actually decreasing. The inability of ADA/USD to not penetrate late November values with its recent short-term run higher late December is not a positive signal. Sellers of ADA/USD may be suspicious of support levels below, and believe the cryptocurrency is approaching oversold territory. However, if the broad cryptocurrency market remain nervous, there is reason to suspect further selling within ADA/USD could be exhibited.
If the 1.300000 level proves weak as support and lower values are seen, this could create targeted selling which aims for depths below which were tested several times in the middle of December. Technically, aiming for the 1.200000 realm may be too far a stretch for short-term speculators, particularly if they are using leverage. However, quick hitting trades looking for the 1.310000 to 1.280000 realms below may prove worthwhile short term.
January may be another difficult month for ADA/USD if the broad cryptocurrency market stays nervous. Traders can certainly look for reversals higher, but they should also practice solid risk management and not be overly ambitious. Unless ADA/USD suddenly starts to build momentum upwards and this correlates with its major counterparts, Cardano simply may continue to trend downwards.