$DOT

🟩 Key Observations:




  • Major Support Zone:

    Price is currently sitting at a strong horizontal support zone around $3.90–$4.00, tested multiple times since October 2023. It acted as both accumulation and bounce zone in the past.



  • Downtrend Line Resistance:

    A clear descending trendline from the $9.50+ highs continues to suppress bullish momentum. Any upside move will need a breakout above this trendline for confirmation of trend reversal.



  • Falling Wedge (Broken):

    The price previously broke out of a falling wedge (marked in gray), typically a bullish reversal pattern, but now it’s retesting the wedge zone + support. This is a crucial retest area.



  • Volume Context (Not Shown):

    If volume increases on support here, bounce probability increases. If price closes below $3.90, further downside toward $3.50 is likely.



🎯 Possible Trade Setup (Spot-focused)




  • Entry Zone (Demand Area):

    Between $3.90–$4.10



  • Targets (Swing to Mid-term):




    • TP1: $4.50



    • TP2: $5.00



    • TP3: $5.50+



  • Invalidation (Stop-Loss):

    Below $3.75 (clear support break)



  • Risk–Reward (R:R):

    Favorable (around 2.5–3.0 depending on entry)



🧠 Reasoning:




  • Strong historical support tested again — could trigger a bounce.



  • The asset broke downward structure once already; this is a potential retest entry.



  • No long setups if price closes under $3.75 — would then indicate more downside.



✅ Summary:



DOT is sitting at a high-probability support zone. If it holds, this could offer a great low-risk long entry for spot or swing traders.

Watch for a strong bullish candle or volume spike for confirmation. Patience is key.