$DOT #dot DOT/USDT is currently trading at 6.997 USD, up 2.19% in the last 24 hours. The highest and lowest prices for the day are 7.270 USD and 6.654 USD, respectively. Trading volume reached 9.71 million DOT (equivalent to 67.50 million USD). With the current trend, DOT is attempting to break through the short-term resistance around 7.00-7.30 USD.
Historical analysis and trends:
DOT previously peaked at 55.09 USD in 2021 during a strong bull market. However, the price then fell sharply, establishing a recent bottom at 4.20 USD. Since then, DOT has shown steady growth, with a 59.70% increase over the past 90 days, indicating long-term recovery signals.
The nearest support level for DOT is 6.50 USD, while the strong resistance area is around 7.30-7.50 USD. If it surpasses this resistance level with high trading volume, DOT could aim for further targets such as 8.00 USD or 10.00 USD. Conversely, if it fails to maintain the upward momentum, the price could adjust to the support level of 6.50 USD or even lower to 6.00 USD.
Investment strategy:
1. Long-term investors:
Capital allocation:
Deploy 20-30% of capital at the current price to start accumulating.
If the price adjusts to the support level of 6.50 USD, an additional 30-40% can be deployed.
Retain the remaining capital to wait for clear signals when the price breaks above the resistance level of 7.30 USD.
Risk management: Set a stop-loss at 6.00 USD if the price drops deeper than expected.
2. Swing traders:
Short-term strategy:
Buy in the price range of 6.90-7.00 USD, expecting the price to rise to the resistance level of 7.30 USD.
Set short-term profit targets (3-5%) and exit the position as soon as the target is reached.
Set a stop-loss at 6.80 USD to limit risks.
3. Breakout strategy:
Monitor: If the price surpasses the resistance level of 7.30 USD with high trading volume, consider buying more to take advantage of the upward trend.
Expectations: The price could rise to levels of 8.00 USD or 10.00 USD if the market maintains growth momentum.
Potential assessment:
DOT has strong recovery potential in the long term thanks to its robust Polkadot ecosystem and application scalability. However, given its history of volatility, investors need to be cautious and allocate capital wisely to manage risks. The current moment is an opportunity to accumulate, but close monitoring of the resistance area at 7.30 USD is needed to make appropriate decisions.