ADA Masterclass: Spotting the Perfect Trade
2025-01-04
Category: None

Happy New Year, everyone! I hope 2025 is off to a fantastic start for you, filled with success, joy and of course, profitable trades. ADA has been a shining example of technical precision in recent months, offering reliable and rewarding setups. Let’s explore what the charts are telling us as we move forward into the new year.

 Market Overview: 
ADA has consistently respected key technical levels. Recently, the market completed a perfect ABC correction to the trend-based Fibonacci extension 1:1 at $0.7655, almost to the dollar. Following this correction, ADA has seen a strong rally, now approaching critical resistance levels, while the $1 support zone emerges as a pivotal area.

 Key Observations and Levels: 
1.) Resistance Zone – $1.079–$1.1108
 
 ADA is approaching the 0.618 Fibonacci retracement of the broader downtrend from $1.3264 to $0.7624, located at $1.1108.
 
 
 This level is a significant resistance zone, marking a potential turning point where sellers could step in to take control.
 
2.) Short Trade Idea:
 
 A short trade setup can be executed at $1.1108, targeting the $1 support zone for a potential 8–9% gain.
 
Trade Setup Details:
 
 Entry: $1.1108
 
 
 Stop Loss: Above the 0.666 Fibonacci retracement.
 
 
 Target: $1
 
 
 Risk-to-Reward Ratio: 3:1
 
 
 Risk: 2.75%
 
3.) Support Zone at $1:

The $1 level remains a critical support zone due to multiple confluences:
 
 Psychological significance as a round number.
 
 
 A single print zone between $1.001–$1.003, indicating a key liquidity area.
 
 
 Alignment with the 0.382 Fibonacci retracement of the current wave (1st January low to 3rd January high).
 
 
 Anchored VWAP from the recent lows is also sitting at $1, adding further weight to this level as a strong support zone.
 
 Long Trade Idea: 
 
 A long trade can be considered if ADA revisits the $1 support zone, but ensure to wait for volume confirmation to validate buying strength before entering.
