ðADA: Potential Short Opportunity on 4-Hour Timeframeâïļ
ðToday, let's analyze Cardano (ADA) on the 4-hour timeframe. After encountering rejection twice at $0.7971, the price experienced a downward leg, retracing to the 0.5 Fibonacci level of the previous wave before resuming its descent to the 0.618 Fibonacci extension, where it currently consolidates.
ðThis level coincides with support at $0.5633, and a breakout below it could signal further downward movement, with targets at the 0.786 Fibonacci level and subsequently at the 1 Fibonacci extension.
âĄïļThe SMA25 indicator has converged with the price, potentially exerting downward pressure. Failure of SMA25 to push the price lower could indicate a ranging market.
ðCandle volume has been range-bound since reaching $0.5633, indicating ongoing buyer presence and a lack of significant selling pressure.
ðFor long positions, entry above $0.5886 could be considered, although it carries inherent risks.
ðOverall, Cardano presents a potential short opportunity, contingent upon a breakdown below $0.5633, with various technical indicators suggesting downward momentum.
ð§ ðžIt's important to acknowledge the inherent risks in futures trading, with the potential for margin calls if risk management is neglected. Always adhere to strict capital management principles and utilize stop-loss orders, ensuring that the initial target offers a risk-to-reward ratio of 2
ðThis level coincides with support at $0.5633, and a breakout below it could signal further downward movement, with targets at the 0.786 Fibonacci level and subsequently at the 1 Fibonacci extension.
âĄïļThe SMA25 indicator has converged with the price, potentially exerting downward pressure. Failure of SMA25 to push the price lower could indicate a ranging market.
ðCandle volume has been range-bound since reaching $0.5633, indicating ongoing buyer presence and a lack of significant selling pressure.
ðFor long positions, entry above $0.5886 could be considered, although it carries inherent risks.
ðOverall, Cardano presents a potential short opportunity, contingent upon a breakdown below $0.5633, with various technical indicators suggesting downward momentum.
ð§ ðžIt's important to acknowledge the inherent risks in futures trading, with the potential for margin calls if risk management is neglected. Always adhere to strict capital management principles and utilize stop-loss orders, ensuring that the initial target offers a risk-to-reward ratio of 2
