ADAUSDT Short to Demand Zone $0.28ADAUSDT has had a huge push since late December, culminating in a 150% gain, before making its first sign of weakness with a lower high. A triangle structure is forming currently, providing a roadmap of where price action may potentially go. Using this road map, we can set ourselves up for a higher risk reward ratio trade before we reach the end of triangle, where a whipsaw move would wick us out of the play.
My bias here is bearish for a number of reasons:
1. A solid rejection of the supply at $0.38 has created a lower high.
2. The 10 EMA on the 12h has crossed below the 20 EMA for the first time since the push began.
3. RSI has fallen below 50, expecting this to come back up and re-test the 50 which should give us our entry for the short.
The entry zone that I have marked out is the supply formed by the last green 12h candle, around $0.34.
Invalidation of this idea will be if the price breaks out and forms a higher high, so this has been placed above previous structure.
I am expecting at least an attempting bounce from the green highlighted demand area, and have placed the take profit in front of that (on the 38.2% fib) incase this level is "front-run" as it has been in the past.
Always take profit, even if you expect a bigger move. Most of the time, these occur in waves, and we may get another bite at the cherry when PA re-tests the S/R flip zone at $0.30.
