Cardano Forecast: May 2021
ADA/USD continues to traverse the higher realms of its long term range. A record high was made in the middle of April and speculators may expect greater value.
ADA/USD has proven it has the ability to climb past resistance and create new highs. On the 14th of April, Cardano climbed to all-time value above one-and-a-half dollars. While it suffered a reversal lower and saw the one-dollar mark challenged nearly one week later, the digital currency has incrementally climbed again and is comfortably within the higher realms of its price range as it begins its May trading near the 1.350000 USD mark.
The broad cryptocurrency market remains within an exuberant stance, and ADA/USD continues to see positive momentum and is the seventh highest ranked cryptocurrency regarding market capital. ADA/USD continues to sustain rather solid support levels and its technical trading range the past couple of months remains impressive. The last time ADA/USD traded below the 1.000000 mark with a sincere amount of price action was on the 23rd of February.
Certainly, ADA/USD is a speculative asset and traders cannot merrily pursue buying positions of the cryptocurrency blindly. However, while the broad cryptocurrency market continues to trade with bullish momentum and USD/ADA’s trend continues to incrementally demonstrate an ability to climb, its resistance levels should be examined as potential targets and gateways to higher values. Importantly, the 1.400000 mark is tantalizingly close as May trading begins, and this mark is clearly a key inflection point which could cause short-term volatility and reversals.
When and if the 1.400000 level is punctured higher and values are sustained above, speculators may believe that another bullish surge is growing in potential. Having achieved the 1.400000 level on the 28th of April, ADA/USD then challenged the 1.260000 mark below, but intriguingly, the support level held and the 1.200000 value showed no signs of coming into view short term.
If selling momentum becomes strong within ADA/USD, traders should watch the 1.200000 mark astutely, because if this support level becomes vulnerable, a test of 1.150000 could develop rather abruptly. Since the beginning of March, ADA/USD has proven to have enough speculative backing to create a strong support barrier, which has produced strong reversals near the 1.000000 mark. If this lower level is approached, it could be a significant level for cautious traders to dip their toes in the water with buying positions.
However, aggressive speculators who fear they may miss out on another surge higher and a challenge to record levels will likely not want to wait for ADA/USD to drop to its lower support boundaries. Traders who feel they can withstand volatility and want to pursue ADA/USD within its current high range could use the nearby support junctures of 1.330000 to 1.300000 to activate buying orders in search of resistance near the 1.350000 and 1.400000 levels, which are within sight.
Cardano Outlook for May:
Speculative price range for ADA/USD is 0.999000 to 1.600250 during the month of May.
Traders need to understand ADA/USD remains a highly speculative asset, and when entering the market with either selling or buying positions, it is encouraged to use limit orders to protect against unexpected fills. The use of stop-loss orders are a must, particularly when a large amount of leverage is being used. Support near the 1.300000 mark could prove to be strong, but if it falters and incrementally become vulnerable, traders should use the 1.2800000 and subsequent intervals of 2 cents lower as guide posts.
ADA/USD remains within a long-term bullish trend. The ability of Cardano to attain record highs in February, followed with a close challenge to records values in March and its ability to sustain its price range is curious and attractive. The fact that another all-time high in the middle of April was made by ADA/USD continues to highlight upward momentum may not be finished.