DOTUSDT.1DIn my current technical analysis of the DOT/USDT daily chart, I've identified a primary descending trendline indicating a sustained bearish momentum since the peak around $11.889. This pattern has framed my approach to trading DOT over recent months, with a focus on identifying potential reversals or continuation of the trend.
As observed, the price of DOT has recently tested resistance at R1 ($4.657), which aligns with the descending trendline. This intersection is crucial as it has historically acted as a pivot point for DOT's price, signaling either a rejection and further downside potential or a breakout that could change the prevailing downtrend.
The support levels at S1 ($3.526) and S2 (around $3.00, as extrapolated from previous lows not explicitly marked on the chart) serve as indicators for potential bounce-back zones where buyers might regain control. Should the price breach S1 and head towards S2, I would monitor for any bullish reversal patterns as potential entry points for a long position.
Conversely, a break above R1 could prompt me to adopt a bullish outlook, targeting R2 at $7.133. This scenario would likely involve a shift in market sentiment, possibly driven by broader market recoveries or DOT-specific positive catalysts. Given the current market structure, such a move would necessitate high volume to confirm the breakout.
Adding to the technical indicators, the placement of moving averages (not visible but typically part of my analysis toolkit) and oscillators like RSI and MACD would further influence my decision-making process. For instance, an RSI above 60 accompanying a price breakout above R1 would reinforce a bullish scenario.
