ADA / USD continues to show a rather negative price trend as resistance levels gradually decline and prove to be lasting.
The ADA / USD will enter in January with its long-term negative price trend intact. As of this writing, Cardano is near the 1.360,000 ratio and continues to show signs of a decline. Yes, ADA / USD was trading near the 1,600,000 level until the 27e December, but a downward reversal put the cryptocurrency back in view of strong support.
For a week in mid-December, the ADA / USD continued to flirt with the 1,20000 level. While this price may have held up, the absence of a sustained upward reversal may lead short-term traders to believe that the greatest possibility of profit regarding risk-reward scenarios lies in selling bets. If the 1.30000 level turns out to be vulnerable in the short term, it could generate more nervousness. The December slump in Cardano has retained its negative trajectory intact, which began in earnest on the 1st September immediately after all-time highs were touched slightly above the 3,000,000 junction.
The direction of the ADA / USD has not been a one-way street, higher reversals are occurring, but the resistance levels have been found to be rather durable and are in fact falling. The inability of ADA / USD to stay out of late November values ââwith its recent short-term rise in late December is not a positive signal. ADA / USD sellers may be wary of support levels below and believe the cryptocurrency is approaching oversold territory. However, if the large cryptocurrency market remains nervous, there is reason to believe that further sales within the ADA / USD could be on display.
If the 1.30000 level turns out to be low while support and lower values ââare seen, it could create a targeted sell that targets lower depths which were tested several times in mid-December.. Technically, targeting the 1,200,000 area may be too far out for short-term speculators, especially if they are using leverage. However, quick trades to research the 1.310000 to 1.280000 realms below can come in handy in the short term.
January could be another tough month for ADA / USD if the vast cryptocurrency market remains nervous. Traders can certainly look for higher reversals, but they should also practice sound risk management and not be overly ambitious. Unless the ADA / USD suddenly starts to gain momentum and correlates with its major counterparts, Cardano might just continue to trend downward.
Cardano outlook for December
The speculative price range for ADA / USD is 0.960000 to 1.940000.
The key psychological support for ADA / USD could be the 1.290000 level. The value is not far removed from the current price action, but if it is breached and prices are held below that point, it could trigger further nervous selling. Short term traders should definitely use take profit and stop loss orders, they should also use entry prices when initiating their positions to protect against unanticipated fillings. If the ADA / USD weakens further and the 1.260000 level is tested, it could reignite momentum towards the 1.20000 price. If this lower support level is penetrated, then ADA / USD would test prices that had not been seen since late July 2021.
Higher reversals within the ADA / USD are occurring. Volatility remains a staple of Cardano and a move above the 1,400,000 level could trigger speculative buying. But until the ADA / USD is able to break through the 1,600,000 mark and hold that higher level, it would be hard to say that Cardano has turned bullish. Traders who are speculative buyers should be keen on the short term to seek out quick trades that can be cashed out when profits emerge.
The inability of the ADA / USD to demonstrate a long-lasting bullish trajectory in recent months should not be ignored. While it is possible for a sharp rise to occur, traders may want to remain skeptical about the technical capabilities of an upward aerial rocket until significant resistance is broken and maintained. Any move above 1,600,000 would be remarkable and could prove to be intriguing for more bullish activity if it were to occur.