- ADA took liquidity below but missed the demand zone—no problem, the next trade will come
- The current M15 supply zone isn’t extreme and still has liquidity above, making it weaker
- Price could push slightly higher before any real reaction—waiting for confirmation is key
In our last Cardano analysis, we saw how ADA finally took out liquidity below after days of consolidation and started pushing higher.
Unfortunately, it missed the demand zone, but that’s how the market works—if price always retraced perfectly, we’d all be millionaires.
Now, here’s a key lesson: if price moves without you, don’t chase it. It’s like a taxi—you missed it? No problem. Just wait for the next one.
At the moment, Cardano is sitting on an M15 supply zone, but before jumping to conclusions, let’s break down how to recognize strong vs. weak supply/demand zones.
Cardano Analysis: Why This Supply Zone Might Fail
Not all supply zones are created equal. Here’s the issue with this one:
- It’s not at an extreme level, meaning it lacks the strength of a major reversal point.
- There’s still liquidity above, making it a prime target before any significant drop.
- If price moves up slightly, it could trigger sellers entering too early and also stop-losses of buyers, creating a perfect scenario for a liquidity grab.
What does this mean? This supply might not hold long-term. If price does react, it could just be a short-term move before heading higher.
Final Thoughts
We can never predict price movements with absolute certainty. The market will do what it wants, and trying to force trades is how retail traders get wrecked.
The best approach? Identify potential scenarios, set alerts, and react accordingly. If the setup plays out, great. If not, there’s always another trade.
Disclaimer: The information provided in this article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Any actions you take based on the information provided are solely at your own risk. We are not responsible for any financial losses, damages, or consequences resulting from your use of this content. Always conduct your own research and consult a qualified financial advisor before making any investment decisions. Read more
