📈ADA: Potential Short Opportunity on 4-Hour Timeframe✂️🔍Today, let's analyze Cardano (ADA) on the 4-hour timeframe. After encountering rejection twice at $0.7971, the price experienced a downward leg, retracing to the 0.5 Fibonacci level of the previous wave before resuming its descent to the 0.618 Fibonacci extension, where it currently consolidates.
📉This level coincides with support at $0.5633, and a breakout below it could signal further downward movement, with targets at the 0.786 Fibonacci level and subsequently at the 1 Fibonacci extension.
⚡️The SMA25 indicator has converged with the price, potentially exerting downward pressure. Failure of SMA25 to push the price lower could indicate a ranging market.
📊Candle volume has been range-bound since reaching $0.5633, indicating ongoing buyer presence and a lack of significant selling pressure.
📈For long positions, entry above $0.5886 could be considered, although it carries inherent risks.
📝Overall, Cardano presents a potential short opportunity, contingent upon a breakdown below $0.5633, with various technical indicators suggesting downward momentum.
🧠💼It's important to acknowledge the inherent risks in futures trading, with the potential for margin calls if risk management is neglected. Always adhere to strict capital management principles and utilize stop-loss orders, ensuring that the initial target offers a risk-to-reward ratio of 2
