ADA/USD produced destructive trading during the month of May, depending on which side of the trend speculators were participating on.
Volatility and swift whipsaw price action filled the air during the month of May for ADA/USD. While this may sound overstated for dramatic reasons, traders who tried to participate with speculative positions within Cardano the past four weeks will probably agree with the sentence. ADA/USD achieved record values on the 16 of May, touching the 2.440000 mark. Three days later, ADA/USD was testing the 1.000000 level, and traders who were caught within this fast market were either very lucky winners or bruised losers when the results were finalized.
If speculators anticipate the capability of ADA/USD to create trading conditions which are more akin to wagering in Las Vegas or Monte Carlo, and can honestly say they enjoy this type of environment, then trading Cardano is definitely worth a look. This is not to make ‘light’ of trading ADA/USD; it is the fourth highest-ranked cryptocurrency regarding its market capitalization as the month of June gets ready to start. It is to point out that traders need to be prepared for ADA/USD as if they are about to embark on a military operation. Nothing should be left to chance and proper risk-taking tactics need to be carefully decided upon.
Curiously, ADA/USD is actually doing better technically within its current charts compared to many other cryptocurrencies. After falling to a low of nearly 1.330000 yesterday, ADA/USD has reversed higher and is actually testing an interesting resistance dynamic near the 1.620000 mark. If the junctures of 1.700000 and 1.800000 begin to come within sight on short-term bullish sentiment, as other major cryptocurrencies continue to skirt important support, this test of resistance raises important questions.
Is ADA/USD simply not going to correlate to the broad market? Or is Cardano a cryptocurrency which reacts slightly behind the majority of the marketplace? Or is ADA/USD actually a precursor and a signal for the broad digital currency that a reversal higher is going to happen because of its recent bullish results? The answer is likely that bullish speculative forces still have some force with Cardano, but eventually, ADA/USD may begin to react to broad sentiment and again face headwinds. However, this is merely conjecture, and the results in ADA/USD are likely to make this prediction appear foolish.
As the broad cryptocurrency market continues to sputter and traverses within sight of important support, ADA/USD’s ability to produce a reasonable push higher since May the 24th does look suspicious.
Cardano Outlook for June:
Speculative price range for ADA/USD is 0.970000 to 2.000000.
After proving it has the ability to almost double its value and then lose those gains promptly, ADA/USD finds itself testing an important price juncture which matches values from the second week of the May. If ADA/USD falls below the 1.550000 level and then comes within the 1.450000 mark, bearish speculators may believe the 1.3000000 value will be tested again. If Cardano does see extended bearish momentum persist, traders could not be blamed for thinking the 1.200000 level and below may prove vulnerable.
Speculative bulls who believe ADA/USD has the capability to continue to foster more buying should look out for the 1.700000 to 1.800000 ratios. These values, however, proved to create a significant amount of bearish selling when tested only a handful of days before. Until the 1.800000 mark is penetrated higher, bullish traders should remain cautious. However, if the price of Cardano is sustained above the 1.800000 level and the broad cryptocurrency market also turns bullish, a test of 1.900000 to 2.000000 is not out of the question. Traders of ADA/USD need to use risk management, as Cardano can move fast and could prove to be a dangerous playground for inexperienced speculators.