ADA/USD: Move Higher Beginning to Display Signs of Momentum – 23 March 2022
ADA/USD is trading slightly under 97 cents as of this writing and is showing signs of being able to sustain higher momentum. In late trading last night, Cardano briefly moved over the important 1.00000000 mark, but then reversed lower after coming within sight of the one month highs. ADA/USD has been able to demonstrate a solid upwards track the past week.
The broad cryptocurrency market has been indicating more bullish perspective technically and the question for near term wagers is if ADA/USD can maintain this developing trend. Obviously reversals lower are part of the speculative landscape, and traders cannot venture forth with buying positions without using risk management. If a trader is skeptical about the bullish trend which has been exhibited in ADA/USD the past week, they can certainly sell Cardano too, but that may prove dangerous in the near term.
The wiser choice for speculative positions currently, may be buying ADA/USD when it does suffer a reversal lower. If current support levels which are around the 0.96750000 to 0.96350000 ratios can prove durable this may spur on additional buying. The broad cryptocurrency market has produced solid gains in recent trading, some profit taking is bound to be seen which can take the market lower but it may be short lived.
If a real shift of sentiment is underway and the promise of spring is starting to excite cryptocurrency traders, then ADA/USD may be ready to see a longer bullish run be created. If ADA/USD breaks above the 97 cents mark short term and shows an ability to not only sustain its value but also create sincere velocity higher, traders may want to be ready to position buying orders that are ignited via the positive momentum.
One method to do this would be to have buying positions above current market values, perhaps near the 0.97300000 level. If close by resistance levels begin to be challenged and look vulnerable, another test of short term highs could materialize in the near term. The broad cryptocurrency market has shown signs of life before during the long bearish trend which has been endured by many speculators, but if ADA/USD is able to break through one month high’s this might be a positive signal.
Current Resistance: 0.97900000
Current Support: 0.96200000
High Target: 1.01650000
Low Target: 0.951500