$DOT BREAKOUT SETUP — BULLISH CONTINUATION IN PLAY
Polkadot ($DOT) is showing signs of a strong bullish continuation after reclaiming key support at $4.20. Price has broken out of a descending wedge on the 4H chart, backed by rising volume and RSI divergence. This setup favors momentum traders looking for clean upside targets with manageable risk.
MARKET DIRECTION: Bullish
ENTRY: $4.35–$4.45 (on retest of breakout zone)
TP1: $4.80
TP2: $5.10
TP3: $5.50
SL: $4.18 (below wedge support)
RISK MANAGEMENT:
Use 1–2% of account size. Position sizing should reflect volatility—DOT tends to spike on volume surges. If price closes below $4.18 on 4H, exit immediately. This setup is invalidated if BTC breaks below $26.5K.
TECHNICAL CONTEXT:
- Descending wedge breakout confirmed
- RSI bullish divergence on 4H
- Volume spike on breakout candle
- 21 EMA crossing above 50 EMA
- DOT/BTC pair also showing strength
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