ADA good risk:reward short with an optionality of H&S break
ADA is one of those names with a very devoted following, and believers who think it may even overtake BTC. This could also potentially mean that it as loads of HODLers who are overly bullish but nursing big losses. Anyway, whether you are a believer or not, a tactical short is always worth a trade, especially if it presents a good risk:reward scenario like in this.
Looking at ADABTC (rather than ADAUSD as I think most ppl trade it vs BTC): After a very classic double top break at ~0.000035 levels, ADA has gone back into the 0.000029 to 0.000035 box. I think 0.0000348 is a great short level, with a stop just around 5% higher at 0.0000368 levels, while targeting a downside over 10% profit to 0.0000312. Conservative traders can take full profits there, while aggressive ones can take half off while waiting for a H&S breakdown at 0.000029 to cover the rest much lower at 0.000024. Will update the idea as we go along.
Looking at ADABTC (rather than ADAUSD as I think most ppl trade it vs BTC): After a very classic double top break at ~0.000035 levels, ADA has gone back into the 0.000029 to 0.000035 box. I think 0.0000348 is a great short level, with a stop just around 5% higher at 0.0000368 levels, while targeting a downside over 10% profit to 0.0000312. Conservative traders can take full profits there, while aggressive ones can take half off while waiting for a H&S breakdown at 0.000029 to cover the rest much lower at 0.000024. Will update the idea as we go along.
Order cancelled:
ADABTC moved lower as expected, but did not give us a chance to short at a better level. Canceling the trade.