DOT trading setup
2024-11-10

Weekly: long term analysis 

  

 BINANCE:DOTUSDT   CRYPTOCAP:DOT  was one of the top gainers of the 2021 altcoin bull run. After more than 95% deep correction during the bear market, DOT exhibited a strong upward price action (+170%)  after a rebound on the multi year support line around 3,60$


 Strategy 

  

Buy signal has been given by the breakout of the 5$ level after a mature consolidation (abcde triangle wave pattern). The breakout has volume and is breaking the upper bollinger band.
 
 Objective 1: Next resistance line 6,50$ ( +25%)
 Objective 2: Multi year resistance line at 10$ (+95%)
 Objective 3: ATH at 50$ (+900%)
 

 Invalidation  

Mental Stop: A daily close just below the breakout that would invalidate the scenario. This setup proposes a nice Risk Reward
If prices retrace to this stop level we will wait for the weekly closing price then set a Stop loss ¼ or Risk below the weekly close price.
Risk = Distance between Mental stop and entry point. 
