ADA – Is the $1 Support Zone the Next Target?
2024-12-17
Category: None

ADA is currently trading within a well established range-bound structure. Here’s the breakdown of this setup:

 1. Key Levels to Watch 

$1.00

This is the most critical support zone and psychological level.

The Golden Pocket (0.618 Fibonacci retracement) lies perfectly at this level, adding strong confluence for buyers to step in.

 Resistance:
 Around the 0.786 Fibonacci retracement level (~$1.107), where price could be rejecting. The 0.786 Fibonacci level coincides with the Point of Control (POC) of the trading range.
The anchored VWAP (Volume Weighted Average Price) aligns with this resistance, creating a high-probability short opportunity!

 2. Trade Setup: Low-Risk Short Opportunity 

Given the confluence of the following:

0.786 Fibonacci level (~$1.107): Resistance zone.
Anchored VWAP: Adding overhead selling pressure.
Order Block & Golden Pocket at $1: Strong support target.

This creates a low-risk short setup:

Entry: Near $1.107
Take-Profit: $1.015 
Stop-Loss: Above $1.113 to limit risk exposure.

 3. Risk-to-Reward Ratio 
Risk: ~1% loss (tight stop above resistance).
Reward: ~8% gain (targeting the $1.00 support).
This gives us an 8:1 risk-to-reward ratio, making it a highly favorable trade setup.

 4. Supporting Indicators 
Volume Profile: Price has significant volume accumulation near the current range, indicating strong resistance around $1.10-$1.12.
Bearish Structure: Price remains below the anchored vwap (yellow line), indicating bearish momentum.

 Conclusion 

ADA is showing strong confluence for a potential short opportunity with minimal risk and significant upside reward. A retest of the $1 support is likely, given the combination of the Fibonacci Golden Pocket, order block and anchored VWAP resistance. 