- Market Overview for ADAUSDT
Current Market Trend:
ADAUSDT (Cardano) is currently in a medium-term uptrend, characterized by higher highs and higher lows.
In the short term, the market appears to be in a correction phase (likely Wave 4) in the Elliott Wave cycle.
Objective:
Identify entry opportunities in the correction phase for long trades (trend continuation).
Recognize potential exhaustion at the end of Wave 5 for short trades (trend reversal).
- Fibonacci Zones for ADAUSDT
Key Support and Resistance Levels:
Fibonacci Retracement Levels (Support for Long Trades):
38.2% (1.236 USDT): Minor correction, initial support.
50% (1.200 USDT): Moderate correction, typical buy zone.
61.8% (1.180 USDT): Deeper correction, ideal entry for conservative long positions.
Fibonacci Extension Levels (Resistance for Short Trades):
127.2% (1.350 USDT): First profit-taking target.
161.8% (1.400 USDT): Second profit-taking target if the trend extends further.
- Strategies for ADAUSDT
A) Long Strategy (Trend Continuation)
Entry Zone:
Enter in the 50% to 61.8% Fibonacci retracement zone of the previous upward movement.
Example for ADAUSDT: If the previous move was 1.100 USDT to 1.300 USDT:
50% Retracement: 1.200 USDT.
61.8% Retracement: 1.180 USDT.
Stop-Loss (SL):
Place the SL just below the 78.6% Fibonacci retracement level (1.150 USDT).
Alternatively, place it below the last significant low, e.g., 1.140 USDT, for better protection.
Take-Profit (TP):
TP1: 127.2% Fibonacci extension (1.350 USDT).
TP2: 161.8% Fibonacci extension (1.400 USDT).
Confirmation:
Look for bullish reversal signals in the 61.8% zone.
RSI should be between 40-60, indicating a neutral zone before an upward move.
MACD bullish crossover near the support zone.
B) Short Strategy (Trend Reversal)
Entry Zone:
Enter in the 127.2% to 161.8% Fibonacci extension zone, which typically marks the end of Wave 5.
Example for ADAUSDT: If the last move was 1.100 USDT to 1.300 USDT:
127.2% Extension: 1.350 USDT.
161.8% Extension: 1.400 USDT.
Stop-Loss (SL):
Place the SL just above the 200% Fibonacci extension (1.450 USDT) to avoid sudden breakouts.
Take-Profit (TP):
TP1: 38.2% Fibonacci retracement (1.236 USDT).
TP2: 61.8% Fibonacci retracement (1.180 USDT).
Confirmation:
Look for weakness in the resistance zone (e.g., decreasing volume on new highs).
RSI above 70 (overbought) or a bearish divergence.
Candlestick patterns like Doji or Shooting Star in the resistance zone.
- Risk Management for ADAUSDT
Position Sizing:
Risk no more than 1-2% of total capital per trade.
Risk-Reward Ratio (RRR):
Aim for a minimum of 1:2 or 1:3 to ensure long-term profitability.
Trailing Stop:
After reaching TP1, adjust the SL to the entry price to secure profits and eliminate risk.
- Summary of Entry Zones for ADAUSDT
Strategy Entry Zone SL TP1 TP2
Long 1.180 - 1.200 USDT Below 1.150 USDT 1.350 USDT (127.2%) 1.400 USDT (161.8%)
Short 1.350 - 1.400 USDT Above 1.450 USDT 1.236 USDT (38.2%) 1.180 USDT (61.8%)
