ADA/USDT – Possible Short

ADA/USDT – Bearish Reaction from Key Channel Resistance | Short Opportunity

Bias: Short Setup (Counter-Trend)

Cardano (ADA) has reached a significant technical juncture following a strong bullish impulse. Price has tapped into a critical resistance zone marked by:

The upper boundary of a broadening ascending channel

A horizontal liquidity pocket at 0.6195, labeled as “Level 1”

An extended impulsive move without consolidation, suggesting potential overextension

📌 Key Price Levels
Resistance (Short Entry Zone):

Level 1: 0.6195 USDT

Bearish Targets (Take Profits):

TP1: 0.6017 – Local support & minor demand

TP2: 0.5939 – Mid-range value zone

TP3: 0.5842 – Confluence of wedge support & previous demand

The structure resembles a rising broadening wedge, typically a bearish reversal formation, especially after a sharp leg into resistance.

The breakout from the smaller consolidation wedge has now run into major supply, where early short entries may begin to scale in.