DOT/USDT Daily Analysis: Inverse Cup and Handle Pattern Emerging
Polkadot (DOT) appears to be forming a bearish inverse cup and handle pattern on the daily time frame, signaling potential downside if the pattern confirms. Here’s the breakdown:
📌 Pattern Structure:
Cup Formation: The large, rounded top indicates a loss of upward momentum, culminating in a clear resistance zone around $7.50-$8.00.
Handle Formation: A minor consolidation or relief rally, currently forming as a descending structure near the neckline, which is a key bearish continuation signal.
📏 Key Levels to Watch:
Neckline Support: The yellow horizontal line at approximately $7.00 is critical. A breakdown below this level would confirm the bearish pattern.
Measured Move Target: The projected downside is calculated by measuring the height of the "cup" and projecting it downward from the neckline. This suggests a potential target near $4.70 (red support zone).
📉 Bearish Case:
A breakdown below the neckline with strong volume could accelerate selling pressure, leading to a significant drop toward the measured move target.
The red arrow indicates the expected price trajectory if the neckline support fails.
💡 Invalidation:
If DOT manages to hold the neckline and break above $8.00, the bearish pattern could be invalidated, opening the door for a bullish move.
📊 Conclusion:
The inverse cup and handle pattern suggests a bearish outlook for DOT/USDT, with a possible move toward $4.70 if the neckline breaks. Traders should watch for volume confirmation on the breakdown and set proper risk management strategies.
Do you think DOT will hold the neckline, or is a breakdown imminent? Share your thoughts! 👇
Polkadot (DOT) appears to be forming a bearish inverse cup and handle pattern on the daily time frame, signaling potential downside if the pattern confirms. Here’s the breakdown:
📌 Pattern Structure:
Cup Formation: The large, rounded top indicates a loss of upward momentum, culminating in a clear resistance zone around $7.50-$8.00.
Handle Formation: A minor consolidation or relief rally, currently forming as a descending structure near the neckline, which is a key bearish continuation signal.
📏 Key Levels to Watch:
Neckline Support: The yellow horizontal line at approximately $7.00 is critical. A breakdown below this level would confirm the bearish pattern.
Measured Move Target: The projected downside is calculated by measuring the height of the "cup" and projecting it downward from the neckline. This suggests a potential target near $4.70 (red support zone).
📉 Bearish Case:
A breakdown below the neckline with strong volume could accelerate selling pressure, leading to a significant drop toward the measured move target.
The red arrow indicates the expected price trajectory if the neckline support fails.
💡 Invalidation:
If DOT manages to hold the neckline and break above $8.00, the bearish pattern could be invalidated, opening the door for a bullish move.
📊 Conclusion:
The inverse cup and handle pattern suggests a bearish outlook for DOT/USDT, with a possible move toward $4.70 if the neckline breaks. Traders should watch for volume confirmation on the breakdown and set proper risk management strategies.
Do you think DOT will hold the neckline, or is a breakdown imminent? Share your thoughts! 👇
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.