DOT/USDT Daily Analysis: Inverse Cup and Handle Pattern Emerging
Polkadot (DOT) appears to be forming a bearish inverse cup and handle pattern on the daily time frame, signaling potential downside if the pattern confirms. Here’s the breakdown:
📌 Pattern Structure:
Cup Formation: The large, rounded top indicates a loss of upward momentum, culminating in a clear resistance zone around $7.50-$8.00. Handle Formation: A minor consolidation or relief rally, currently forming as a descending structure near the neckline, which is a key bearish continuation signal. 📏 Key Levels to Watch:
Neckline Support: The yellow horizontal line at approximately $7.00 is critical. A breakdown below this level would confirm the bearish pattern. Measured Move Target: The projected downside is calculated by measuring the height of the "cup" and projecting it downward from the neckline. This suggests a potential target near $4.70 (red support zone). 📉 Bearish Case:
A breakdown below the neckline with strong volume could accelerate selling pressure, leading to a significant drop toward the measured move target. The red arrow indicates the expected price trajectory if the neckline support fails. 💡 Invalidation:
If DOT manages to hold the neckline and break above $8.00, the bearish pattern could be invalidated, opening the door for a bullish move. 📊 Conclusion: The inverse cup and handle pattern suggests a bearish outlook for DOT/USDT, with a possible move toward $4.70 if the neckline breaks. Traders should watch for volume confirmation on the breakdown and set proper risk management strategies.
Do you think DOT will hold the neckline, or is a breakdown imminent? Share your thoughts! 👇 #BinanceLabsBacksUsual #Binance #crypto #USUALAnalysis #BTCNextMove
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content.See T&Cs.
