📊 $ADA Day Trading Strategy for May 7, 2025

1. Entry Points:

Support Zone: Consider entering long positions if ADA approaches the $0.644–$0.650 support range. This zone aligns with the lower Bollinger Band and a significant horizontal base, indicating potential for a price rebound. Coin Edition

Breakout Confirmation: A breakout above the $0.688 resistance level could signal a bullish trend continuation. Traders might look for confirmation through increased volume and positive momentum indicators before entering.

2. Exit Points:

Resistance Levels: Monitor the $0.70–$0.73 range for potential profit-taking opportunities. This zone has previously acted as a resistance area, and price action here could indicate a reversal or continuation.

Trailing Stop-Loss: Implement a trailing stop-loss strategy to protect gains as the price moves in your favor. Adjust the stop-loss level according to market volatility and personal risk tolerance.

3. Risk Management:

Stop-Loss Placement: Set a stop-loss order around $0.640 to limit potential losses if the trade moves against you. This level is identified as a critical support, and a drop below could invalidate the bullish setup.

Position Sizing: Avoid risking more than 2-5% of your total trading capital on a single trade to manage risk effectively.

4. Advanced Considerations:

Elliott Wave Analysis: Cardano is currently forming a "retrend to rally" within a wave 2 pattern. A break above major resistance could confirm the start of wave 3, potentially pushing prices beyond $1.00 in the upcoming trend.

Whale Activity: Large holders have accumulated approximately 410 million $ADA in April, signaling confidence in the asset's potential. This accumulation could provide upward pressure on the price.

"Success in trading comes from patience, discipline, and the courage to act when the odds are in your favor."

Stay informed, manage your risks wisely, and seize the opportunities that align with your trading strategy.

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