Analysis of ADA price trend: Breakthrough or inducement? 🔥🔥🔥
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ADA broke through the $1.12 resistance on January 7, but the good times did not last long. This seemingly "starting" breakthrough quickly turned into a bullish trap, catching those chasing the rise off guard.
Subsequently, the price of ADA took a sharp turn downward, not only falling below the 20-day moving average (about $0.98), but also approaching the key support of $0.9.
In the next few days, ADA may fluctuate in the range of $0.9 to $1.18, and the consolidation trend is obvious.
Support analysis:
$0.9: The current solid support is expected to attract buying intervention. If $0.9 is lost, it is necessary to be vigilant about the next line of defense of further decline to $0.85.
Resistance outlook:
$1.18: If the bulls want to take the initiative again, this level must be broken and must stand firm. Once it breaks through $1.18, $1.33 may become a new target.
Short strategy layout:
If the price falls back in the range of $1.12 to $1.18, you can short with a light position, with a target of $0.98 and a stop loss above $1.2. If it falls below $0.9, the opportunity to chase the short appears, with a target of $0.85 and a stop loss above $0.92.
Long strategy planning:
If it stabilizes and rebounds around $0.9, you can try long with a light position, with a target of $1.12 and a stop loss below $0.88. If it successfully breaks through and stabilizes at $1.18, add long positions, with a target of $1.33 and a stop loss below $1.15.
This wave of ADA is like a roller coaster, but overall, the probability of consolidation in the range of $0.9 to $1.18 increases. If the $0.9 support is lost, the bears may make a comeback; on the contrary, if it can stand firm at $1.18, the bulls are expected to have a good opportunity to rebound.
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