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A quick push higher has brought ADA/USD to solid short term highs, but this burst of energy has been seen before in Cardano and it has been followed by moves lower.
Cardano has come out of the weekend performing a rather polite climb higher. As of this writing, ADA/USD is traversing slightly above the 62 cents level and its bursts higher the past handful of hours may have bullish traders getting excited for further journeys upwards and dreams of hitting 66 cents or more. While this upper tier prices are certainly attainable in the short term, so is the possibility that another downturn will develop.
Technical perception is a large part of the puzzle for day trader consideration. While a five day chart shows a solid rise and creates the notion that new highs have been achieved, a look just a bit further backwards towards the end of May shows that ADA/USD is still below marks achieved on the 30th and 31st of May when the 68 cents level was challenged. Cardano moves fast.
Depending on perspective, traders could absolutely decide that another push higher for short term wagers might create enough momentum to find the higher prices seen one week ago. Short term wagers as always are advised to use conservative leverage, stop loss ratios and take profit tactics. Intriguingly the broad cryptocurrency market has displayed a bit of optimistic buying in some of the other major digital assets this morning, Bitcoin among them.
However, because ADA/USD has been dealing within the confines of a strong bearish trajectory for quite some time, it needs to be considered that there is potential to look for reversals lower too. While it might be tempting for traders who feel the need to be buyers to seek upwards climbs and profit via rises in price, there is also the potential for selling ADA/USD when key resistance levels are within sight based on the thought that Cardano will return to its selling trend in the near term.
Day traders should be careful today. This morning’s activity shows that short term buying has produced a rather solid amount of gains and there is reason to suspect ADA/USD could flirt with higher prices seen in the last days of May. Short term wagers on the 63 and 64 cents levels could prove worthwhile for buyers. However bullish traders are urged not to become overly ambitious, because it appears ADA/USD still has days ahead when it will press lower again.
Cardano Short-Term Outlook
Current Resistance: 0.62750000
Current Support: 0.60230000
High Target: 0.66940000
Low Target: 0.52930000
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