Eng. Iván Paz, CEO of Trading Different, carried out an analysis on the native cryptocurrency of the Cardano network, (ADA), and its direct relationship with the growing value of Bitcoinwhich he shared with Cointelegraph en Español.
“Following the recovery of Bitcoin, Cardano has been one of the main altcoins to rise in value, having an increase of more than 60% so far. Although the Cardano price is showing resistance to continue rising at USD 0.39, after such a rise we could expect a correction, which would be normal and healthy for the market.”, declared Engineer Paz.
“The question is where to expect those pullbacks. Where to find key shopping points to accompany this recovery. With the Liquidation Pools toolwe can detect these potential bounce points”, stressed Paz showing the graph below.
Trading Different Liquidation Pools Tool Chart
The CEO explained: “The Liquidation Pools are price zones, which indicate through a mathematical algorithm, where all traders who enter the market over-leveraged could lose. This algorithm, developed by the Trading Different team, shows us where the price would be most likely to go, forced by high-frequency bots. These High-frequency bots take advantage of market failures, force the price in one direction, and use Stop Loss and Liquidation Point zones to close out their large-volume winning positions.”.
Finally he concluded:Based on this, we will be pay attention to the following 3 price levels: 0.34, 0.316 and 0.284 dollars. Observing these highly liquid areas does not imply that yes or yes the price will reach those areas, but if it does get closer, high frequency bots will try to force the price at those levels to liquidate leveraged long positions. Meanwhile, if the market remains bullish, We can see the price break 0.4, looking for the Pools that reach 0.418”.
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