$DOT has been recovering steadily from the lows near $1.150, grinding higher over the past week before pushing up toward $1.320 and pulling back to where it sits now at $1.286, hovering between two levels that will determine the next directional move.
The $1.250 – $1.270 area is the support zone to watch. It has been holding price up on multiple visits recently and needs to stay intact for the recovery structure to remain valid and for another attempt at the highs to develop.
Holding above $1.250 – $1.270 keeps the push toward the $1.320 – $1.350 resistance overhead on the table. Losing that zone though puts price back toward the lower end of the recent range and raises questions about whether the recovery has enough conviction behind it.
The overall structure has improved from the lows but the range between support and resistance remains fairly tight. Until $1.320 – $1.350 is cleared and held convincingly, any bounce from current levels should be treated with caution rather than assumed as a continuation of the recovery.
