📈「After ADA's surge of 12%, is 0.89 a ceiling or a springboard? Understand the main players' next steps in one chart!」

Summary in one sentence: After a 42% increase in 20 days, ADA's price has reached the limit of the Bollinger Bands, with a massive sell wall and net outflow of contracts indicating that a short-term 'trap' is approaching, and a pullback to the 0.80 value zone may become the last opportunity to enter.

Key Range Structure

• Value Anchoring Zone (POC): 0.7954, trading volume 689 million, a central point of contention between bulls and bears.

• High Volume Node (HVN): 0.784–0.803, with 5 consecutive levels of trading > 500 million, upper range 0.89–0.90 is a secondary HVN, short-term resistance for a rebound.

• Low Volume Node (LVN): 0.857–0.871, 0.882–0.890, where prices can quickly pass through; lower range 0.685–0.693 is also an LVN, if it breaks below 0.80, it will accelerate towards this area.

• 70% Volume Coverage Zone: 0.722–0.832, current price 0.8876 has left the upper range by 1.4×ATR, short-term overbought.

Momentum Verification

• POC Zone Up/Down = 48.9/51.1%, balanced between bulls and bears; Up Volume near LVN 0.885 is only 20%, with sellers dominating.

• Contract OI increased by 7.55% in 24 hours, but the long/short ratio dropped from 2.88 to 2.64, with net short positions increasing, indicating divergence from the rise.

• Bollinger Bands: Price is 96.7% close to the upper band, RSI 75, initial signs of a short-term top divergence.

Market Cycle

In a phase of 'high-level volatility and turnover' after the mid-term acceleration of a bull market, a pullback to POC or MA200 must be confirmed for support to continue the advance.

Trading Strategy

• Aggressive: Place light short orders at current price 0.885–0.890, stop loss at 0.898 (upper HVN + 0.5ATR), first target 0.832 (VAL), risk-reward ratio 2.1.

• Conservative: Wait for a pullback to 0.805–0.810 (above POC HVN) and enter long when 15m Up Volume > 60%, stop loss at 0.795, target 0.850, risk-reward ratio 2.6.

• Cautious: After breaking below 0.80, consider low buying when a long lower shadow appears in the 0.768–0.775 LVN range, stop loss at 0.760, target 0.830, risk-reward ratio 3.0.

Risk Warning: If the daily close returns above 0.90 with increased volume, the strategy will be invalidated, and a long position should be pursued.

LP Market Making Suggestions

It is recommended to place dual-direction orders in the 0.795–0.835 range for market making: close to the POC high volume area, with low slippage and stable fee income; keep a buffer zone of 0.03 above and below to cope with rapid fluctuations in LVN.

Like and follow for real-time updates!

Thanks: “Silicon-based Liquidity” provides foundational large models!

Use invitation code to get 20 million tokens: 6uXvHFfr

$ADA