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Cardano ADA Price Analysis: Potential Short Position with Favorable Risk-Reward Ratio

!WARNING! Cardano ADA ANOTHER CRASH COMING?!
!WARNING! Cardano ADA ANOTHER CRASH COMING?!

In this article, we will discuss the price action of Cardano’s ADA across different timeframes and analyze potential wave patterns. We will also evaluate possible trading strategies.

Price Action Analysis

The price of Cardano’s ADA has been consolidating in a range between $0.28 and $0.33 for the past few weeks. The 1-hour chart shows a potential bearish divergence between the price and the stochastics indicator. This suggests that the price may be due for a correction.

The 1-day chart shows a potential wave pattern that could be unfolding. The price is currently in the third wave of a larger uptrend. The fourth wave could be a bearish correction that takes the price back to the $0.28 level.

Liquidation Data

Liquidation data from different exchanges shows that there have been a significant number of long positions liquidated in recent days. This suggests that there is some selling pressure in the market.

Wallet Counts

The number of wallets holding 100,000 ADA or more has been increasing in recent months. This suggests that there is accumulation of ADA by long-term investors.

Trading Strategy

One possible trading strategy is to short ADA at the current price with a stop loss at $0.33. The target for the short trade is the $0.28 level. The risk-reward ratio for this trade is favorable, as the potential profit is twice the potential loss.

Conclusion

The price of Cardano’s ADA is consolidating in a range and could be due for a correction. The 1-hour chart shows a potential bearish divergence, and the 1-day chart shows a potential wave pattern that could be unfolding. Liquidation data shows that there has been some selling pressure in the market. The number of wallets holding 100,000 ADA or more has been increasing, which suggests that there is accumulation of ADA by long-term investors.

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