"DOT Coin Analysis: Mid-Box Line Breakdown"💹 Let's dive into Polkadot (DOT), update our previous analysis, and explore new entry points for potential profit.
🎉 Channel Milestone 500 Followers:
Thank you all for helping this channel reach 500 followers! Our next goal is 1,000 followers. Let's keep growing together!
🏦 Market Sentiments:
In our previous analysis, due to the impact of the war and other bearish factors, this coin was unable to recover and simply formed a long-term ranging box, with none of our triggers being activated.
📰 Weekly Time Frame:
We're still inside the box ranging from 3.771 to 10.324, which has persisted for about 700 days and will likely continue. Currently, we're at the support and mid-line of the box at 5.932.
I've previously explained about the long-term weekly boxes of crypto coins and will likely provide an educational piece on this in the future. Most crypto coins have formed long-term weekly boxes after the 2021 peak, and without breaking these boxes, they cannot have significant moves. Examples include SOL, LINK, and INJ, which had substantial moves after breaking their boxes.
🔄 Daily Time Frame:
We had a trend line that, after breaking and retesting it, moved upward but failed to go higher after hitting the resistance at 7.609 due to a lack of buyers, forming a ranging box.
If the daily candle closes here as it is, it will confirm the box breakdown, and we can expect a downward move at least to 5.565. Additionally, breaking the RSI line at 34.31 will further confirm this downtrend.
🔍 Four-Hour Time Frame:
We've reached the bottom of the box, and if it breaks, we can expect the downward trend to continue. This rejection from the top and fall to the bottom of the box was caused by Bitcoin's rejection from its peak.
📅 Trading Strategy:
Short Position:
After breaking 6.104, we can open a short position. Entering RSI into the oversold territory will provide better confirmation for our entry.
Long Position:
It's really not advisable to open a long position on this coin because the higher time frame trend is bearish, and even in this four-hour box, the sellers are clearly stronger than the buyers.
💰 Currently, Bitcoin dominance is rising, so it's better to open positions on altcoins and follow them, using Bitcoin's trigger line breaks for trend confirmation. Bitcoin currently controls 55% of the market cap, and altcoins are following its lead.
🔑 Support and Resistance Levels:
Support Levels: 5.565, 4.776, 3.969
Resistance Levels: 6.844, 7.629, 8.360
😊 If you'd like me to analyze a specific coin or currency pair, be sure to comment so that I can allocate the next analysis for you!
⚠️ Also, please remember that I'm just an analyst, and this isn't financial advice. We're here to stay in the market and maximize profits by adhering to risk and capital management principles.