Market context analysis $ADA
Long-term trend (1 day/1 week): ADA is in a long-term downtrend (Bearish). The price is below important EMA lines (EMA 50, EMA 100). However, the price is in a fairly strong historical support zone around the 0.25 - 0.26 mark.
Short-term trend (15m - 1h): There is a strong rebound after hitting the bottom of 0.2534. However, currently, the price is facing profit-taking pressure at the resistance zone of 0.3134.
RSI indicator: In the 1h and 4h frames, RSI is at an average level, but in the 5m frame, RSI is showing signs of entering the oversold zone, indicating that short-term selling pressure is occurring.
MACD: There are signs of a death cross in the smaller frame, indicating a slight correction before a new direction.
2. Trading Plan
Based on the price just hitting the resistance of 0.3134 and currently adjusting, the most reasonable strategy is to wait to buy (Long) at the support zone to follow the rebound of the 4h frame.
Order: LONG ADA/USDT
Entry Zone: 0.2820 – 0.2880 (This is the confluence area of the EMA line and short-term support).
Stop Loss (SL): 0.2730 (Below the nearest wick low).
Take Profit (TP) points:
TP1: 0.3050 (Take 50% of the position)
TP2: 0.3130 (Previous high)
TP3: 0.3250 (Resistance in the 4h frame)
R:R ratio (Risk/Reward): Approximately 1:2.5
3. Risk management notes
Leverage: It is recommended to use x5 - x10. Avoid using too high leverage because ADA has quite a sharp volatility.
Capital management: Only enter a maximum of 2-5% of total capital for this order.
Strategy: If the price reaches TP1, move SL to the entry point to secure capital.