DOT Rectangle

Apr 28

DOTUSDT has been trading in a rectangle since October 2023, with important key levels dating all the way back to May 2022. It also recently broke support, swept liquidity to $3.3 and reclaimed the demand zone, setting itself up for a potential rebound.

Key Levels to Watch
• $3.5-$4.0: Main demand zone
• ~$7.5: Rectangle midline + key S/R dating back to May 2022, could act as a strong resistance
• $10-$12: Main supply zone

Potential targets
Measured rectangle targets
• Breakout: $20
• Breakdown: $1.0

Other Considerations
Another laggard, similar to Filecoin (https://www.tradingview.com/chart/FILUSDT/bMobdml8-FIL-Rectangle/).
While it's still unclear whether these coins are rebounding or heading for a breakdown, they could offer some of the highest R/R potentials for longs, and they have very clear invalidations.

Triggers
• My long trigger for Polkadot would be a break above the 50-day EMA and the demand zone (~$4.0).
• Invalidation (and short trigger) would be a sustained break below $3.5 or a lower low below $3.3.

May 9

Note

DOT broke out of its recent downtrend channel.
A successful clear of the local $5.3 high will set it up for a retest of the longer-term rectangle midline around $7.5.