My DCA Strategy: Strengths
Buying at multiple levels (as visible by series of “B” entries) helps smooth out the average purchase price, especially in a volatile sideways market.
My lowest buy at $0.51 means my average is likely below current price ($0.5825), giving a buffer if ADA continues climbing.
Setting sell limits around $0.605 shows discipline — locking in profits on rebounds.
⚠️ Potential Risks & Considerations
The clear resistance zone at $0.605 is a hurdle; repeated failures to break above may cause another leg down. Monitor closely for rejection candles or high volume sell-offs at that level.
The recent price low at $0.51 is a key support. If broken, it could trigger stops and accelerate downside, so plan your DCA steps below this level carefully.
The sideways movement suggests a market waiting for a catalyst — ADA’s next big move could be sudden.
📈 Actionable Insights
Continue DCA, but Adjust Step Size:
If price dips back near $0.55 or below, consider slightly larger buys as the risk/reward improves closer to recent support.
Above $0.60, reduce DCA size or avoid buying — that area has proven resistance.
Watch MACD Crossovers:
A bullish crossover (DIF crossing above DEA) above the zero line would support further upside.
A bearish crossover below zero could signal deeper corrections.
RSI Triggers:
RSI < 40: Great time to add aggressively to DCA.
RSI > 70: Time to sell partial positions or tighten stop-losses.
Volume Confirmation:
When price moves are backed by strong volume spikes, it’s more likely to sustain — look for confirmation before adding or exiting.
Set Stop-Losses & Targets:
Consider stop-losses just below $0.50 to protect capital if ADA collapses.
Take profits partially at $0.605–0.62 to lock gains if it rallies.
