DOT is gonna have trouble for bullish movement
2024-12-25
Category: None

DOT/USDT Daily Analysis: Inverse Cup and Handle Pattern Emerging

Polkadot (DOT) appears to be forming a bearish inverse cup and handle pattern on the daily time frame, signaling potential downside if the pattern confirms. Here’s the breakdown:

📌 Pattern Structure:

Cup Formation: The large, rounded top indicates a loss of upward momentum, culminating in a clear resistance zone around $7.50-$8.00.
Handle Formation: A minor consolidation or relief rally, currently forming as a descending structure near the neckline, which is a key bearish continuation signal.
📏 Key Levels to Watch:

Neckline Support: The yellow horizontal line at approximately $7.00 is critical. A breakdown below this level would confirm the bearish pattern.
Measured Move Target: The projected downside is calculated by measuring the height of the "cup" and projecting it downward from the neckline. This suggests a potential target near $4.70 (red support zone).
📉 Bearish Case:

A breakdown below the neckline with strong volume could accelerate selling pressure, leading to a significant drop toward the measured move target.
The red arrow indicates the expected price trajectory if the neckline support fails.
💡 Invalidation:

If DOT manages to hold the neckline and break above $8.00, the bearish pattern could be invalidated, opening the door for a bullish move.
📊 Conclusion:
The inverse cup and handle pattern suggests a bearish outlook for DOT/USDT, with a possible move toward $4.70 if the neckline breaks. Traders should watch for volume confirmation on the breakdown and set proper risk management strategies.

Do you think DOT will hold the neckline, or is a breakdown imminent? Share your thoughts! 👇