$DOT /USDT
Time Frame: 1D (Daily)
Confidence of Analysis: 70%
Recommendation: BUY
🔍 Key Technical Signals
Technical analysis suggests that Polkadot ($DOT ) may be approaching a bullish turning point despite the current downward trend:
1. Descending Wedge: This is a classic bullish reversal pattern, indicating that selling pressure is waning.
2. Critical Support at $1.945: The price is reacting to a fundamental support zone.
3. RSI in Oversold: The Relative Strength Index (RSI) is at low levels, indicating that the asset is technically "oversold" and ready for a possible rebound.
4. Intact Downward Trend Line: Although the overall trend is downward, reversal signals suggest that this line could break soon.
🎯 Targets and Risk Management
The target price for this rebound is set at $2,209. This level coincides with the resistance of the 20-period Exponential Moving Average (EMA 20). A breakout above $2,209 would confirm the reversal.
The most notable aspect of this trade is its excellent Risk/Reward ratio of 7.45:1, which justifies the entry according to the analysis.
⚠️ Reminder (Risk Management): The long-term trend is downward. Always use a Stop Loss! A key invalidation point would be a decisive breakout below the support of $1,945.
Daily volume: $3,883,030.75
Conclusion
Based on the combination of the Descending Wedge, Oversold condition, and favorable risk, the signal is BUY.
Do you think $DOT /USDT will manage to break the resistance of the EMA(20) and confirm the rebound? Leave your comment! 👇
