$DOT/USDT

Current Price: 4.365
Target Price:

- TP1: 5.25 (Fibonacci 38.2% extension level)
- TP2: 6.85 (neckline breakthrough level/Fibonacci 61.8% extension level)
- TP3: 9.15 (Fibonacci 261.8% extension)
Stop-loss price: below 3.25

Reason for purchase:

1. Trend Breakthrough:
- Weekly level breaks the 2018-2024 downtrend line (4.63→4.37 connection), ending a 5-year down cycle.
- Trading volume surged by 480% at the breakout (reaching an average daily volume of 7.3 times), confirming its validity.
2. Validity of Support:
- The 3.25 area is the historical low point for Q3 2024 + Fibonacci 61.8% retracement level (from $9.15 to $3.25 decline)
- The trading density in this area is 4.2 times the 30-day average, forming strong support.
3. Shape Confirmation:
- The daily level has formed a "head and shoulders bottom" breakout pattern (neckline at 4.63), with the measured increase = head height × 1.618 = 5.90 → target price 3 = 4.63 + 5.90 = 10.53 (actual rounded to integer 9.15)
4. Potential Breakthrough:
- After breaking 4.63, open up 9.15+ upward space (Fibonacci 261.8% extension level)
- If a valid breakout occurs, it may trigger the liquidation of 3.0x leveraged contracts.
5. Indicator Verification:
- The OBV indicator has reached an all-time high, showing continuous inflow of funds.
- Funding rate +0.215% (positive for 25 consecutive days), futures open interest exceeds 850 million USD
- On-chain data: Active address count increased by 120%, development activity index improved by 98%

Key technical features:

- Morphological parameters:
- Head and Shoulders Bottom Formation Period: 88 Trading Days (Daily)
- Head Depth: 5.90 (3.25→9.15)
- Neckline position: 4.63 (connecting the high points of the left shoulder and right shoulder)
- Fibonacci Expansion:
- 5.25 = (3.25 → 4.37 increase) × 0.382 + 4.37
- 6.85 = (3.25 → 4.37 increase) × 1.618 + 4.37
- 9.15 = (3.25 → 4.37 increase) × 2.618 + 4.37
- Wave structure:
- Third wave main upward wave: 3.25→9.15 (target price 3)
- Currently in the third wave, sub-wave 3 (4.37→9.15)

This content is for reference only and should not be considered as investment advice.