【$ADA Signal】Hold off on trading — Downtrend continuation, no effective support observed

$ADA After breaking below EMA20 (0.2638), the price accelerated downward and is currently within a downtrend channel, testing a thin support around 0.254.

🎯 Direction: Hold off on trading

Market analysis: The 4H chart shows consecutive bearish candles, with the latest candle’s buying volume only accounting for 47%, indicating persistent selling pressure. The price has moved far from EMA20 and is in a clear downtrend.

Hardcore logic: Key data points to a bearish dominance. 1. Open interest (OI) remains stable; the price is falling but no large-scale long liquidations (OI not decreasing), suggesting that the main players are gradually offloading rather than panic selling. 2. Funding rate remains positive (0.0007%), with no extreme negative rates, indicating low short-squeeze risk. 3. RSI (34.36) shows oversold conditions, but in a downtrend, a single oversold indicator does not signal a reversal.

Deep order book shows massive buy orders accumulated in the 0.2525-0.2530 range (over 6 million ADA), representing a potential liquidity hunting target. Resistance levels above are EMA20 (0.2638) and the previous low of 0.260.

Current strategy: Price action is weak, with no clear reversal candlestick patterns (such as Pin Bar or bullish engulfing) or volume-price divergence. Despite RSI being oversold, the risk of a “flying knife” drop is very high. Wait for signs of buy absorption at key supports (like 0.2525) — such as long lower shadows and increased buy volume — or a move back above EMA20 accompanied by rising OI before considering a trend reversal.

Trade 👇 $ADA

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