ADA/USD has come off of its late February highs and speculators are likely looking at short-term support levels with caution.
After initiating a hard fork last week, Cardano blockchain helped spur its underlying cryptocurrency ADA to speculative highs. On the 27th of February, ADA/USD traded near the 1.48000 juncture and, as of this writing, the digital currency is trading near 1.20000. On the 4th of February, ADA/USD was trading near 0.41000.
The rise in value of ADA/USD mirrors the success of its major competitors like Bitcoin and Ethereum. However, the positive publicity regarding the ability of Cardano to initiate a successful hardfork certainly helps speculative momentum. Cardano blockchain was created by some people who were preciously involved with Ethereum.
The hard fork brought forth by Cardano recently makes its blockchain available to other potential cryptocurrencies who may want to consider using its technology instead of Ethereum. Cardano was founded in 2015 and launched in 2017 and has always highlighted its open source ability of its potential use for ‘smart contracts’. Its founders say it is faster than Bitcoin and more secure than Ethereum.
ADA/USD is currently ranked as the third largest cryptocurrency in terms of market capitalization. Speculators need to treat ADA with the same perspectives they treat other cryptocurrencies regarding the potential for volatility and the notion that influencers may be hyping ADA/USD with questionable intent.
Traders should notice that via a five-day chart ADA/USD is hovering above important support levels. If the 1.18000 juncture falters it could open the possibility that the 1.14000 mark face a test. The past month of trading in ADA/USD has seen significant value surges and it has also suffered reversals lower. Intriguingly, current support levels are now testing values that were seen on the 20th of February before a strong decline took ADA/USD to lows of nearly 0.85000 cents only a few days later.
ADA/USD has generated plenty of publicity during its hard fork launch the past week and this has certainly helped the value of the cryptocurrency. Traders should be careful of nearby support levels, because if they falter, a test of lower values could rapidly ensue. However, if ADA/USD continues to generate positive news flow and sentiment in the broad cryptocurrency market remains steady to optimistic, another leg up and a test of resistance levels may prove worthwhile to target by speculators.
Cardano Short-Term Outlook:
Current Resistance: 1.25000
Current Support: 1.18500
High Target: 1.30000
Low Target: 1.15000