- ADA reacted perfectly to demand, confirming strong buying pressure
- A “retailer trendline” could act as a liquidity trap before the next move
- FOMC events today may bring volatility—be patient with trades
It’s been a while since we last talked about Cardano (ADA), but the setup we left off with has now played out. Last time, price was ranging between a supply and a demand zone.
Let’s break down what happened and what could come next.
Cardano’s Recent Price Action
After breaking through the supply zone, ADA moved sideways for over a week, forming liquidity just above the demand zone.
Classic setup.
Then, Cardano took that liquidity and reacted to demand with precision.
Now, price is moving up with volume, and there’s one key thing to watch: the liquidity sitting to the left. If we extend that level, it forms what I’d call a “retailer trendline.”
What’s a Retailer Trendline?
Retail traders love drawing trendlines and assuming price will follow them forever.
But smart money? They use these trendlines as liquidity traps—faking a reaction to lure in sellers, only to send price the other way.
Right now, ADA is in a prime spot for a fakeout move that traps shorts before continuing higher.
Will FOMC Shake Up ADA’s Price?
Today’s FOMC events could be a game-changer:
- FOMC Economic Projections
- FOMC Statement
- Fed Interest Rate Decision
With high volatility expected at 18:00 GMT, it’s not the best time to trade blindly. Personally, I’d only act if ADA retraces back to the demand zone below.
If price leaves the liquidity above untouched, even better—it could be setting up for an even bigger move.
Final Thoughts: Be Ready for Anything
As always, nothing is guaranteed. The market moves in unpredictable ways, and while these setups have played out before, they aren’t foolproof.
A smart trader waits for the right setup, instead of forcing trades in high-volatility conditions. Patience always wins.
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What’s Next for ADA?
Cardano’s price action is setting up for a big move. Whether it follows through on this liquidity play or reacts differently, I’ll be watching closely.
What’s your take? Bullish or bearish on ADA?
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