ADA/USD has stumbled again and is within sight of important lower depths, as nervous sentiment in the broad cryptocurrency market remains evident.

ADA/USD is trading near the 48 and half cent ratio as of this writing. On the 26^th of June Cardano was able to touch the 52 and half cent level, but selling has certainly erupted again the past couple of days which has brought ADA/USD back to important lower values. Cardano remains a volatile cryptocurrency due to quick moves. In early trading this morning ADA/USD traded briefly near the 0.47220000 level.

The 42 cents to 56 cents price range has proven rather interesting since the middle of June.  ADA/USD remains within a long term bearish trend and its incremental loss of value is clear on technical charts. In the first week of September 2021, ADA/USD was trading above the 3.00000000 level. Those sunnier days now feel long gone, and traders who have been waiting for a sudden burst of strong upwards buying gaining sustained strength have been sorely disappointed.

The inability of ADA/USD to achieve sustained moves higher will keep bearish traders attention on support levels which lurk.  If ADA/USD can keep its head above the 48 cents level this may actually attract short term bullish buyers who want to aim for 49 cents and slightly above, but they should probably only look for very fast trades and use take profit orders to cash in. Because if the 48 and a quarter cent ratio were to suddenly come into focus, sellers could not be blamed for targeting values below again.

The broad cryptocurrency market continues to show signs of nervousness.  Yesterday’s trading began to produce incremental selling and the price action of ADA/USD has mirrored the results of the larger market. Cardano remains an important cryptocurrency with a market capitalization ranking at number 8. If ADA/USD technically falls below the 48 cents level this could be viewed as an indicator that additional nervous selling will build.

Lows in ADA/USD have continued to test marks within the 47 cents price range the past week of trading when downturns have occurred. Speculative sellers who believe another round of downwards momentum is going to develop may want to ignite shorts when ADA/USD has touched technical resistance areas perhaps around 0.48610000 if they are conservative. Traders should use entry price orders when trading ADA/USD because it moves fast. Speculators are also encouraged to use take profit and stop loss orders as risk taking tools within the current market conditions.

Cardano Short-Term Outlook

Current Resistance: 0.48860000

Current Support: 0.47990000

High Target: 0.49370000

Low Target: 0.45490000

The US dollar jumped strongly after US inflation figures for April came in stronger than markets had expected, leading to warnings that it may take some time before price increases begin to slow. Accordingly, the price of the USD/JPY currency pair remained stable around and above the 130.00 psychological resistance, which is leading the currency pair towards its highest in 20 years. At the beginning of this week’s trading, the currency pair jumped towards the resistance 131.35 before settling around the 130.00 level at the time of writing the analysis.

According to official figures, the headline inflation of the US consumer price index rose by 8.3% on an annual basis in April, exceeding the agreed forecast of 8.1%. The figure is less than 8.5% in May. But it was this win over expectations that moved the markets and saw the dollar rise rapidly as investors bet that the Fed would remain vigilant and proceed with a series of US interest rate increases.

Core US CPI inflation rose 0.6%, doubling the 0.3% rate recorded in May, but came in slightly above expectations of 0.2%. Commenting on the figures, Richard Carter, head of fixed interest research at Quilter Cheviot, said: “It is too early to declare victory with inflation likely to remain elevated for some time to come, while energy prices may also rise if the Ukraine war escalates.”

Carter adds that while inflation in the US has hopefully peaked, other countries cannot say the same, and this has become a global problem. Prior to the inflation release, money markets were pricing in nearly 200 basis points for the 2022 Fed rate increase. The numbers will at least keep that expectation supportive. Concerns about global economic growth are growing because of the rapid pace of the Federal Reserve in tightening, which is effectively draining liquidity from the United States and the global economy.

The US economy will inevitably begin to slow down as a combination of slowing global growth and higher financing costs take effect.

The US Dollar Index (DXY) surged to a new 20-year high this week on continued expectations of rapid Fed tightening and fears of a global economic downturn that tends to benefit the anti-cyclical dollar. The index a measure of the broader strength of the US dollar based on several key dollar exchange rates. jumped on the heels of the inflation figures and reaffirms that weakness is likely to be seen as temporary in this environment.

According to the technical analysis of the pair: By examining the performance of the USD/JPY currency pair on the daily chart, it seems clear that the bulls’ control of the trend has approached the peak. The markets have absorbed all the events supporting the dollar from raising interest rates and the results of the most important US economic releases and technical indicators have reached overbought levels. It may be the strongest opportunity for profit-taking selling and a trend reversal. Moving in narrow ranges for several trading sessions in a row portends an upcoming strong move.

The closest targets for the bulls are 130.65 and 131.30, respectively. The first shift in the trend needs to move towards the support levels 128.65 and 126.70, respectively.

ETH/USD has taken a negative turn the past two days of trading, and positive sentiment which had been building in the cryptocurrency markets will now be tested.

ETH/USD has taken a quick turn lower the past two days of trading after challenging important mid-term resistance levels above.  On the 3^rd, 4^th and 5^th of April ETH/USD flirted with the 3600.00 ratio which threatened to touch early January marks and could have ignited another bullish leg upward. However, the resistance level has for the moment, proven durable and ETH/USD has seen its price erode swiftly.

The current value of ETH/USD is near 2315.00, close enough to key support levels to actually cause nervousness among speculators, who may have been hurt by the long term bearish trend experienced the past six months. After flashing positive upwards movement since the middle of March, Ethereum has embarked on a sudden downturn and now traders must decide if this is a temporary glitch or a sign of more bad things to come. Speculative endurance is certain to be tested.

If ETH/USD is not able to hold above the 3200.00 mark in the short term, this would be a negative signal.   Optimistic traders may be tempted to believe the selloff being demonstrated will prove to be a worthwhile buying opportunity because a reversal higher can be produced, but they should use careful risk taking tactics just in case selling continues to build momentum in the short term.

The broad cryptocurrency market has taken a negative turn also the past couple of days. ETH/USD is a leading digital asset and should be monitored carefully because it certainly serves as an important barometer of behavioral sentiment. If current support levels prove they can consolidate, ETH/USD may be able to exhibit another move higher near term. Traders need to use a cautious amount of leverage under the present conditions. Support near the 3194.00 level should be watched, if this crumbles things could turn worse.

Speculators who still want to pursue upwards trajectories cannot be blamed. Technically if the 3200.00 ratio is able to remain strong, the current trading range of ETH/USD could prove to be a buying window and a place to seek positive outcomes. The recent trend of ETH/USD has been solid and shown a sustained amount of gains, the sudden downturn could prove to be a momentary reversal lower driven by weak nervous sentiment. Speculative buyers need to be careful and use stop losses, but they cannot be blamed on wagering on higher price targets.

Ethereum Short-Term Outlook

Current Resistance: 3271.00

Current Support: 3194.00

High Target: 3383.00

Low Target: 3077.00