🔍 $ADA (Cardano) Buy / Sell Technical Analysis:
As of May 31, 2025, Cardano (ADA) is trading at approximately $0.707. Let's delve into a comprehensive analysis using Smart Money Concepts (SMC) and Inner Circle Trader (ICT) methodologies, alongside traditional technical indicators.
📌 Market Structure & Institutional Activity
Market Structure Shift (MSS): ADA has experienced a bearish MSS, transitioning from higher highs to lower lows, indicating a potential trend reversal.
Fair Value Gaps (FVG): A notable FVG exists between $0.75–$0.78, suggesting a price imbalance that may be revisited.
Liquidity Zones:
Buy-Side Liquidity: Above $0.80, where stop-loss orders of short positions may reside.
Sell-Side Liquidity: Below $0.65, potential stop-loss clusters for long positions.
📊 Technical Indicators
Exponential Moving Averages (EMAs):
EMA 50: Approximately $0.80
EMA 100: Around $0.81
EMA 200: Near $0.75
Current price is below these EMAs, indicating a bearish trend.
Relative Strength Index (RSI): At 25.71, ADA is in oversold territory, suggesting a potential for a short-term rebound.
Volume: Recent trading volumes have been subdued, indicating a lack of strong buying interest.
🛠️ Trade Recommendations
Short-Term Strategy:
Entry Point: Consider entering a long position if ADA retraces to the bullish OB around $0.64–$0.66, with confirmation from bullish candlestick patterns.
Target: Aim for the FVG zone at $0.75–$0.78 as a potential exit point.
Stop-Loss: Place below $0.62 to manage risk.
Medium-Term Strategy:
Entry Point: A breakout above the bearish OB at $0.85–$0.90, accompanied by increased volume, could signal a trend reversal.
Target: Look towards $1.00 as a psychological resistance level.
Stop-Loss: Set below $0.80 to protect against false breakouts.Copy Trading+1Binance+1
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