POLKADOT – LONG SETUP - LOADING SHORT SQUEEZE POTENTIALTraders,
$Polkadot is close to forming a high probability long setup, but it is not confirmed yet.
Here is the compact breakdown.
WHY DOT IS SETTING UP
Since 08 November price has been grinding down
Spot CVD, Coin Margined CVD and Stablecoin Margined CVD all fell with price which confirms real sell pressure
On 21 November the lows were swept
Today price tapped 2.220, the pivot level, and reacted
But we are still trading below 2.250, which means the squeeze setup is not active yet
Why the sweep matters
On Bybit around 915k Coin Margined short contracts opened into the low.
Coin Margined shorts use DOT as collateral which means when DOT rises they take a double hit.
The short loses value and their collateral also loses value.
This makes them far easier to liquidate once price reverses.
But price must reclaim the key level to trigger this effect.
THE KEY LEVELS
2.220 = the pivot
This is where price reacted
This is the 1.113 extension of the 04 November to 08 November move
This marks the completion of the downside rotation
2.250 = the trigger
This is the level price must reclaim and trade above
Above 2.250 shorts begin to go underwater
Above 2.250 the squeeze becomes active
Until $Polkadot trades above 2.250 the setup remains unconfirmed.
GAMEPLAN
Wait for two 30 minute candle closes above 2.250
This confirms the reclaim and activates the long setup
Look for a retest of the 2.240 to 2.250 zone
If buyers defend that retest it is the clean entry
As long as DOT stays below 2.250 this is only a potential setup
Falling back under 2.200 weakens the idea and requires reassessment
TARGETS IF CONFIRMED
If $Polkadot reclaims 2.250 the upside targets are:
3.675
3.877
4.063
4.327
Each level is a point to reassess momentum and structure.
FINAL VIEW
DOT swept the lows and trapped a large block of Coin Margined shorts.
The pivot at 2.220 has been touched, but the real trigger is 2.250.
Only once price reclaims and trades above 2.250 does the squeeze structure become active.
Until then it remains a potential high probability setup that requires confirmation.
Until the candles speak again,
ThetaNomad
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None of this is financial advice
