The $DOT /USDT chart displays a long-term downward trend since its 2021 peak, followed by a period of consolidation. Recent price action suggests a potential recovery.
Key Levels:
1. Support Level:
Strong support is evident near the $4.50–$7.00 range, where prices have consolidated after a prolonged decline.
2. Resistance Levels:
Immediate resistance is at $10.00.
Major resistance lies in the $17.00–$20.00 zone, highlighted in yellow, which aligns with historical price congestion.
3. Breakout Signal:
A decisive weekly close above $20.00 would signal a major breakout, targeting the $35.00–$40.00 area, as indicated by the blue arrow.
Trading Strategy:
1. Entry Strategy:
Conservative traders: Wait for a breakout above $20.00 with high volume before entering long positions.
Aggressive traders: Accumulate positions near the $7.00–$10.00 range, using the support as a stop-loss level.
2. Stop-Loss:
Place stops below $6.50 to manage downside risk.
3. Take-Profit Targets:
Short-term: $12.00–$15.00
Long-term: $35.00–$40.00 (if $20.00 is breached).
Recommendation:
Traders may consider buying within the current accumulation zone ($7.00–$10.00) with a well-defined stop-loss. A breakout above $20.00 would confirm bullish momentum, favoring long-term positions targeting higher levels.
Framework:
1. Identify key support/resistance levels.
2. Wait for confirmation of breakout or reversal patterns.
3. Manage risk with stop-loss orders.
4. Scale profits at predefined targets.
This setup aligns with a bullish recovery outlook, but patience and disciplined risk management are essential.
