DOT be preparing for a powerful recovery while most traders are still anticipating further downside? The latest price action reveals an interesting opportunity, but one critical level will determine whether buyers can regain control.
💎#DOT previously developed a descending accumulation structure, featuring multiple liquidity sweeps, a potential spring, and bullish RSI divergence. This was followed by a strong impulsive breakout, suggesting a meaningful shift in market momentum.
💎However, after reaching the $1.30 resistance, #DOT faced substantial selling pressure and entered a corrective phase. Price has now retraced into the 0.618–0.786 Fibonacci zone between approximately $0.91 and $1.00, an important area where buyers could potentially step back in.
💎If this zone holds and bullish momentum strengthens, our primary scenario anticipates an initial recovery toward $1.20, followed by a possible consolidation before another attempt to challenge the major $1.30 resistance.
💎Nevertheless Paradisers, the $0.85 level remains our key invalidation threshold. A confirmed 8-hour candle close below it would invalidate the current bullish scenario and increase the probability of further downside toward the next major support at $0.7226.
💎Meanwhile, the RSI has recovered toward the neutral 50 region, suggesting improving momentum. However, this alone is insufficient to confirm a reversal, making price action around the Fibonacci zone particularly important.
💎Remember, the market could still sweep liquidity below nearby lows before making its next decisive move. That is why patience, proper confirmation, and disciplined risk management remain essential rather than anticipating a reversal prematurely.
That is why Paradisers, we are playing it safe right now. If you want to be consistently profitable, you need to be extremely patient and always wait only for the best, highest probability trading opportunities only on confirmations.
