🔥Technical Analysis $DOT 🔥
⭐Main Trend:
DOT is in a strong uptrend with many large green candles. The price has broken above important resistance levels and is currently above all EMA lines (golden, green), reinforcing the uptrend.
⭐Support and Resistance Levels:
Near Support: Around 7.0-7.2 USDT, this is the price level that has just been broken and could become an important support if the price corrects.
Near Resistance: Around 7.8-8.0 USDT, this is the area where DOT may face profit-taking pressure in the short term.
⭐RSI Indicator:
The RSI is currently at 82, indicating it is in the overbought zone, warning of potential price adjustments or sideways movement in the short term.
⭐Trading Plan:
1. Trend Following:
Entry Point: Wait for the price to correct to the support zone of 7.0-7.2 USDT to buy in, further confirm with a bullish reversal candle signal or the RSI dropping to the equilibrium zone (50-60).
Stop-loss: Set below 6.85 USDT, this is the critical area that breaks the current uptrend.
Take-profit: Zone of 7.8-8.0 USDT (short term). If the strong trend continues, higher targets such as 8.2 or 8.5 USDT can be expected.
2. Short-term Trading (Scalping):
Take advantage of short waves around the price level of 7.2-7.6 USDT. Use smaller time frames (M15, M30) to catch quick reversal signals.
3. Risk Scenario:
If the price drops below 6.85 USDT with high volume, the uptrend is invalidated. At that time, it is advisable to consider halting buy orders or switching to a downtrend trading strategy.
💥Note:
The current uptrend is very strong, but with the RSI indicator in the overbought zone, the likelihood of a short-term correction is high. It is essential to be patient and wait for reasonable entry points, avoiding chasing prices (FOMO).