$DOT Trading Setup:
• Entry Price (EP): $5.00 (Current Price)
• Stop Loss (SL): $4.75 (This is slightly below recent support levels to manage risk)
• Take Profit (TP): $5.37 (First Target at resistance) or $6.57 (Second Target if the resistance is broken and momentum continues)
This setup aims to balance risk and reward, especially if DOT can break above the key resistance at $5.37.
In my Elliott Wave analysis of DOT’s price movement, the microstructure of the current wave count remains unclear, though DOT is gaining upside momentum. While Wave 1 is growing, it’s uncertain if it has topped yet, and the structure appears messy with significant overlap. Key resistance levels to watch are $5.10 and $5.37. A break above $5.37 would likely indicate that DOT is already in the third wave of a third wave, targeting $6.57. However, without a clear microstructure, it’s challenging to confirm a substantial low. The $3.85 support area remains critical, as a breach below it could lead to a more bearish scenario.