ADA/USD has fallen to critical support levels as June is about to begin, and jittery sentiment remains a fixture in crypto markets.
Cardano is trading below the 46 cent level at the time of writing this weekend. ADA/USD remains locked in a downward trajectory and has produced insignificant reversals to the upside over the past week as it reflects poor trading conditions across the broad cryptocurrency markets. Bullish speculators betting on the upside based on the belief that ADA/USD is grossly oversold will likely find their mettle tested in a rather unpleasant way.
The support levels traversed by ADA/USD look fragile and if the 45 cent conjuncture is broken lower, it could trigger another round of Cardano selling. The 12e In May, ADA/USD saw volatile selling volume taking Cardano below the 40 cent threshold. An upward reversal occurred and a climb to the 60 cent mark was reached on the 13the and 16e of May. However, the gradual declines in the value of ADA/USD have been steep, and its current price level is too close to be comfortable with the lows reached on the 12the of May.
Consolidation has been seen across the broad cryptocurrency markets over the past two days, but jittery sentiment remains the key ingredient. The absence of a serious reversal to the upside and the idea that the long-term downtrend certainly remains visible, likely leads traders to suspect that additional selling pressure will be demonstrated. Speculative buyers seem to be rare and a hero rush that will suddenly propel ADA/USD to higher levels seems like wishful thinking.
Granted, ADA/USD is going to see higher reversals, but the question is how strong buying can be under current trading conditions. Early February 2021 prices are now in question and if bearish technical speculators prove they are strong, a break below the 45 and 44 cent junctions could spark the idea that lower depths may be found.
The 3rd September 2021, ADA/USD was trading just below the 3.00000000 mark. The fall in value of Cardano from these highs is abundantly clear and has likely hurt many speculators who have chosen to hold their long-term positions. However, day traders have the opportunity to seek out and profit from the negative downtrend in ADA/USD. While some Cardano proponents may be right that the long term looks bright, this coming June doesn’t exactly suggest that bright skies are ahead for ascents that can be sustained.
Cardano Outlook for June
The speculative price range for ADA/USD is 0.33300000 to 0.66000000
ADA/USD remains locked in a negative downtrend. Current price levels may seem cheap due to the value Cardano once exhibited, but at the moment sellers seem to outnumber buyers. If ADA/USD remains stuck below the 50 cent ratio and the broad cryptocurrency market remains fragile, support levels may continue to be tested. As of this writing, with the 45 cent junction acting as support, speculators cannot be blamed for chasing lower realms. If the 44 cent mark suddenly looks weak, the price action could certainly bring Cardano back to the prices seen in the second week of May.
Ambitions, even on the short-selling side of the trading sphere, must remain realistic. Traders are urged to use risk management wisely at all times. The violent sell-offs demonstrated over the past two months could continue into June if behavioral sentiment remains weak and speculative buying cannot gain momentum, but there are no guarantees. If the 42 cent mark is breached in ADA/USD and prices hold near 41-40 cents, that would not be a good sign for Cardano’s bullish positions.
Traders who choose to seek higher reversals based on the belief that higher price action will be generated should keep their goals realistic. ADA/USD has struggled to climb above the 50 cent mark for the past few days, if this bar cannot be breached higher it will be a negative sign. However, if 50 cents is hit, traders should be willing to use take profit orders to cash in the resulting profits. The last time Cardano was above 60 cents was on the 15the of May. ADA/USD can certainly rise, but for now its downtrend remains in check with its market sentiment.