DOT formed a huge "Bullish wedge" lasting six months and came out of it with a retest. This is a breakout of the entire downtrend that has been going on in the asset since the spring of this year.
Now is an important moment for #DOT, a test of the EMA 50 of the daily TF. If the price starts to consolidate higher, it will be a good confirmation signal on the way to the pattern target. The probable target is around the 0.5 Fibonacci level on this decline ($7,740) or the volume level of $7,538. Approximately there is now an upward trend since October 2023 (marked with a dotted line), the breakout of which will be very important for the prospects for further growth.
We set an alert in P73 Trend & Target Dynamics for a transition to the UP zone on the daily TF. Judging by the chart, it is unlikely to be false, but we will keep an eye on it. The previous indicator signals for the transition to the UP zone were with basic stops of -12.55% and -10.6%, and at the peak of growth they gave +115% and +53% respectively. But if we talk about the movement from a trend change to a trend change, the result is +58% and -6%. An indicator that you should not be greedy along the way, that partial fixation and moving the stop to breakeven at the right time is an important part of the strategy.
As with any other indicator, the success of its use largely depends on psychology.
