$ADA

May 7, 2025 Market Analysis: ADA/U (not investment advice)

ADA is not willing to be left out today, pulling off a beautiful engulfing bullish candle, stabilizing the previously terrible emotional drop. The entry strategy is quite clear, the target is defined, and the stop loss is strict, belonging to the 'rational charge'.

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Current Price: 0.6783U

• Entry Point: 0.6783U (already entered, middle of the green box)

• Stop Loss: 0.6704U

— Just below EMA20, a stop loss point favored by technical traders.

• Target: 0.6982U (close to the previous high)

— This targets the 'rebound recovery' market, consistent with the 0.295 wave expectation.

• Risk-Reward Ratio: 2.52, arguably today's 'high cost-performance representative'.

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Key Points of Chart Analysis:

1. Previous Structure: The left side has multiple rising channels (yellow line) that have broken, followed by a long downward trend (red line);

2. Bottom Signals: Divergence at the bottom + large bullish volume + standing above the moving average, a set of combination punches delivered, the shape is beautiful;

3. Moving Average Coordination: EMA20 has been reclaimed and is starting to tilt upwards, which is a basic condition for trend reversal;

4. Operation Suggestion: Now is the time to hold after entering, continue to hold if the short-term pullback does not break EMA20, reduce positions or take profit near the target.

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In One Sentence

This wave of ADA is like 'first getting kicked and then whipped', and now it has finally broken free from control and is starting to fight back. As long as the market does not show a negative response, a rebound to the previous high is highly probable.

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