• Entry: Watch for a price retracement to the area of 0.678 – 0.685 (old Kumo cloud peak area)
• Stop Loss: Above the area of 0.698 (to avoid getting caught in false breakouts)
• Take Profit 1: 0.640 (short-term support zone)
• Take Profit 2: 0.610 (strong support zone that has been tested multiple times)
• Expected R:R ratio: About 2:1 or higher if the price breaks strongly through the TP1 area
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📊 Technical Analysis and Strategic Logic:
The ADAUSDT chart on the 4H frame shows:
• The price has escaped from a densely accumulated range lasting several days with total volume over 1.4 billion, indicating the end of the sideways phase and the beginning of a downward distribution phase.
• The old support zones at 0.68 – 0.70 have been broken along with a clear weakening in liquidity (only 121.152M remaining with Delta -112.23M) → Money is flowing out of ADA.
• The Ichimoku cloud has turned entirely red, the price has fallen out of the cloud and the Tenkan + Kijun lines have crossed down sharply → the downward trend has been established.
• MACD shows clear negative divergence, histogram continues to expand the red area → no signs of bottom formation yet.
In this context, trading with the downward trend is the optimal choice, rather than taking the risky bottom. Waiting for a price retracement to the nearest resistance zone (0.678 – 0.685) will help traders have a good short position, tight SL, and deep potential TP.
Warning: If ADA holds the area of 0.66 longer than expected and MACD gives a reversal signal, be flexible to exit the position or stay outside and observe.
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