DreamAnalysis | DOT Analysis: Key Triggers and Levels
2024-10-23

✨ Welcome to today’s analysis! In this post, I’ll be analyzing DOT for futures trading and sharing key triggers for this coin. The analysis is done on both the daily and 4-hour timeframes.



📅 Daily Timeframe Analysis
On the daily chart, after DOT reached the resistance at $11.396, the price reversed into a downtrend, forming three waves before hitting the support level at $4.003. Since breaking below $8.365, the SMA99 indicator has consistently acted as a strong resistance above the price.

📊 Currently, after months of consolidation between the $4.003 and $4.866 levels, and forming a range (box) between these two zones, we can expect a potential breakout to the upside due to the gradual increase in buying volume. The SMA99 is also approaching the price, and with the growing volume and compression within the range, there's a good chance the SMA99 could be broken as well. If the resistance at $4.866 breaks, the next resistance levels will be $5.636 and $6.415. Conversely, if the support at $4.003 is lost, the next support zone will be at $3.627.

📅 4-Hour Timeframe Analysis
On the 4-hour chart, DOT has been ranging for a while and is currently within an ascending channel. The price has bounced off both the top and bottom of the channel three times, showing strong reactions.

📈 For a long position, the trigger is a break above $4.572, but this is only valid if buying volume increases and the RSI is above the 50 line to confirm bullish momentum. The target for this long position is the top of the box, with the main trigger for a long being a break above $4.92.

📉 For a short position, the current trigger is a break below $4.18. However, if the price forms a new structure in the future, this trigger could shift higher. For now, the break of this level, which is just below the ascending channel, could be a good short trigger. The target for this short position is the bottom of the box, with the main short trigger being a break below $4.003.

🔼 By following these key levels and triggers, you can position yourself effectively in the futures market for DOT.

❌Disclaimer
This is not financial advice; it is merely my personal opinion on how the coin might move. Always conduct your own research before making any decisions.