ADA/USD Breaks into Supply Zone – Rejection or Breakout Next?

ADA has rallied over 4.5% today and is now testing a key supply zone around 0.8412. This area has acted as a strong resistance in the past and coincides with high volume on the visible range profile.

Key Zones:

Supply Zone (Resistance): 0.8412 – 0.8460 (expect rejection or a strong breakout).

Support Zone 1: 0.7642 – Mid-range support and previous structure.

Support Zone 2: 0.7000 – High volume node and strong demand area.

Major Support: 0.6748 – Key swing low.


Scenarios:

Bearish Rejection (Likely):

Price is hitting an established supply zone with previous selling pressure.

Bearish confirmation here could lead to retracement toward 0.7642 or even 0.7000.


Bullish Breakout (Less Likely but Explosive):

If ADA breaks and closes above 0.8460 with volume, we could see a continuation rally.

Look for pullback entry setups if breakout occurs.


Trade Plan:

Short Setup: Look for bearish candlestick patterns (e.g., engulfing, pin bar) inside supply zone.

TP1: 0.7642 | TP2: 0.7000 | SL: Above 0.8480

Wait-and-Watch for Breakout Buyers: If we get a strong breakout and retest, bulls may get a long opportunity.


Bias: Neutral-to-Bearish until breakout is confirmed

What do you think? Rejection or Rally? Comment your thoughts below!

#ADA #Cardano #Crypto #PriceAction #SupplyDemand #CryptoTrading #LuxAlgo #TechnicalAnalysis #TradingView


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