Market

ADA’s Symmetrical Triangle Breakout: Profit and Loss Levels Decoded Now

Cardano (ADA) forms a symmetrical triangle and large price fluctuations are inevitable. Specific prices have been set for traders ready to buy (or sell) after a breakout. At the time of writing, ADA is trading at $ 2.24, down 1.2% over the past 24 hours.

Source: TradingView

ADA has been waiting for a breakout of nearly 30% either way based on the high of $ 2.43 and the low of $ 2.06 in the pattern. The 4 hour time frame is also used to identify key swing highs and swing lows that may confirm a breakout. For the bulls, a strong close above the confluence of 200 SMA (green) and the October 7th high of $ 2.37 will increase the advantage.

After this development, traders can buy long positions and set a take profit between USD 2.96 and USD 3. Keep in mind that ADA needs to break the $ 2.58 and $ 2.8 resistance areas to maximize profits. Meanwhile, a stop loss can be placed below the October 6th high of $ 2.11.

On the other hand, a close below the 20 SMA (red) could break the pattern. Short sellers can place a bet if ADA falls below the $ 2 mark and get a reasonable take profit of $ 1.87, which translates into a 7% profit. While a 25% collapse will result in lower profit taking for short sellers, the broader market that could prevent ADA from falling to $ 1.50 is at risk.

If the ADA now moves sideways between USD 2.31 and the 20 SMA (red) next week, the chances of a breakout will be greatly reduced.

The squeeze momentum indicator shows that the market has been flooded with bullish pressure. However, traders must refrain from taking positions until the index detects a “squeeze”. The Directional Movement Index (DMI) and the MACD are also very cheap.

Another factor that traders can keep a close eye on is the 24-hour trading volume. During a bullish breakout, the spot volume on the exchanges usually spikes sharply. On the contrary, the volume remained small at the beginning of the collapse.

With indicators rising, the bulls come out on top to break out in their favor. For the best results, it could even see ADA rise to $ 3 before bears intervene. However, the possibility of a bearish collapse is not ruled out. Traders should monitor the above metrics along with trading volume for better understanding.

You can see the ADA prices here.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Annie

According to Ambcrypto

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page

CoinX

Recent Posts

Bybit Proof Of Reserve Shows Changes In BTC, ETH, And USDT

Bybit Proof of Reserve reveals BTC holdings at 50,412 (-8.55%), ETH at 525,641 (+8.11%), and…

1 hour ago

Bitcoin Spot ETF Inflows Reach $449M With BlackRock Leading

Key Points: Bitcoin Spot ETF Inflows totaled $449M, led by BlackRock’s $1.45B contribution. Ethereum Spot…

2 hours ago

Best New Meme Coins to Join for 2025: BTFD Coin Leads, Popcat Keeps It Purr-fect, and Non-Playable Coin Hits Gamers Hard

Discover the Best New Meme Coins to Join for 2025. BTFD Coin's price rollback offers…

3 hours ago

Solana memecoins crash while DTX Exchange hits 100,000 TPS on layer-1 blockchain

Discover how DTX Exchange's historic achievement of 100,000 transactions per second on a layer-1 blockchain…

4 hours ago

Strategic Bitcoin Reserve Expected to Cut 35% of US National Debt by 2049

VanEck suggests the U.S. could reduce its national debt by 35% by 2050 through a…

4 hours ago

The New Lead of Presidential Crypto Council Appointed by Trump Is Bo Hines

President-elect Donald Trump named Bo Hines as the executive director of the presidential crypto council.

4 hours ago

This website uses cookies.