Technical analysis by PraveenTrader1 about Symbol ADA: Sell recommendation (12/7/2025)

PraveenTrader1
Improved SMC Analysis for ADAUSDT

Bearish Order Block (OB): Price has returned to a previously unmitigated bearish order block between 0.4421 – 0.4386. This zone represents the last bullish candle before the strong displacement down, making it a high-probability reversal area. Entry Reasoning: Entry is placed at 0.4387, right at the base of the OB, where institutions typically engineer liquidity grabs before continuing the trend. This level aligns with the price fluctuation zone, showing signs of weak buyer reaction and potential redistribution. Market Structure: Overall structure remains bearish with continuous lower highs and lower lows. The recent consolidation below the imbalance/DM level suggests the market is preparing for another expansion leg downward. Target & Risk Management: Take Profit (TP): 0.4315 → This targets the next liquidity pocket and aligns with the nearest sell-side liquidity zone. Stop Loss (SL): 0.4423 → Above the OB’s premium boundary, where invalidation occurs if price breaks structure. SMC View: This setup follows classic Smart Money Concepts: Price returns to premium zone Mitigates the unfilled OB Grabs liquidity Prepares for bearish continuation If the OB holds, we should see a clean move toward the downside liquidity levels.