TradeCityPro | DOTUSDT Weekly Range Boxes of Altcoins
2025-02-08
Category: None

👋  Welcome to the TradeCityPro channel! 
Let’s analyze DOT, one of the popular cryptocurrencies, and identify its potential entry points.

🌐  Overview Bitcoin 

Before diving into the DOT analysis, let's check Bitcoin on the one-hour timeframe. Due to today's NFP news, Bitcoin has experienced volatility and once again got rejected from the critical $100,000 psychological resistance.

This rejection has led to selling pressure, pushing Bitcoin back toward the 96,445 support, which now has a higher probability of breaking due to this rejection. Additionally, Bitcoin dominance remains within the defined range, showing a slight upward bias. 

If we see a correction, altcoins are likely to experience further declines, and I don't expect any major movements until the end of the week.


🕵️‍♂️  Previous Analysis 

In our previous DOT analysis, we expected a decline after breaking $6.554, leading to a test of the daily range high. However, recent market conditions caused DOT to wick down as low as $3.743, which is its strongest support level.


📊  Weekly Timeframe 

DOT remains inside its weekly range, and despite its 170% range, it is still considered ranging rather than trending.

I've previously discussed "money traps", and this applies here too. You can buy at $3.719, but without momentum, your capital could remain stuck in this asset for a long time. Who knows—could DOT be the next LUNA?

Considering these factors, I prefer either a strong reaction at $3.719 or a breakout above $10.309 before entering a position. I’d rather focus on coins that confirm a breakout before entering**, like Jasmy, which recently provided a 400% gain.

For exiting, if $3.719 support breaks, it's better to accept the loss and exit. Later, if a buy signal reappears, you can re-enter using the same USDT amount, instead of holding and losing more DOT.


📈  Daily Timeframe 

On the daily timeframe, DOT faced a strong rejection at $10.725, forming consecutive lower highs and lower lows. However, recent selling pressure appears to be weakening, and we are currently sitting on the $4.626 support.

Additionally, a trendline is forming, and if DOT rejects from it in the future, this would indicate continued bearish momentum, providing an opportunity to keep short positions open from higher levels.

I personally believe DOT may enter a range for some time, allowing traders who made emotional decisions due to FOMO and market volatility to reassess. For now, I expect the $3.719 support to hold.

That doesn’t mean we should buy immediately. Our strategy is clear , buy after a breakout above $10.725 , Wait for an accumulation range to form or Look for a sharp upward move, retest a key trigger level, and confirm a breakout before entering.
