Here’s a detailed and engaging analysis for ADA/USDT on Bybit after the liquidation event at $0.878. Let’s break it down step by step:
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🚨 Market Insight
A significant long liquidation of $109.94K at $0.878 indicates strong selling pressure and high volatility in ADA/USDT. This liquidation level becomes crucial as it reflects where traders were over-leveraged and caught off guard.
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What’s Next?
1. Current Market Condition:
ADA/USDT has likely entered a key liquidity zone. After a liquidation like this, the market often sees one of two scenarios:
A further breakdown if selling momentum increases.
A bounce if buyers step in around critical support levels.
2. Buy Zone:
The next possible entry points based on market structure:
Primary Buy Zone: $0.850 - $0.870 (Strong Support)
Secondary Buy Zone: $0.800 - $0.820 (Extreme Support)
Wait for confirmation like consolidation or reversal candles before entering a trade.
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Targets and Stop Loss
Short-Term Target (Scalping/Intraday):
Target 1: $0.900 (Resistance Level)
Target 2: $0.930 (Fibonacci Resistance)
Mid-Term Target (Swing Trade):
Target 1: $0.950
Target 2: $1.000
Stop Loss (Risk Management):
Place the stop loss below the secondary buy zone, around $0.790, to protect against further downside.
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Trading Strategy
1. Confirm Reversal: Use indicators like RSI (Relative Strength Index) or MACD to check for oversold conditions and bullish crossovers.
2. Volume Analysis: Watch for a spike in buying volume near the buy zones.
3. Position Sizing: Risk no more than 2-3% of your capital on this trade.
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Market Psychology
The liquidation shows fear in the market. Smart traders will look for signs of strength to take advantage of the emotional selling. Be patient and disciplined—don’t rush into a trade without proper confirmation.
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Disclaimer:
This is not financial advice. Always do your own research and use proper risk management while trading.
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