【$DOT Signal】Bull-Bear Battle, 1H Convergence Ending, Awaiting Breakout

$DOT The 1H timeframe is oscillating narrowly between 1.310-1.320, forming a convergence triangle at the end, about to choose a direction. Although the 4H timeframe is in a downtrend channel, the open interest remains stable, and the price has repeatedly found support around 1.30, indicating weakening bearish momentum. The 1H RSI is at 42, in a neutral to slightly weak zone, with room for a rebound. The order book shows heavy buy orders accumulated between 1.301-1.310, forming a strong support zone.

🎯Direction: Watch and see(Pending orders) - Wait for confirmation of direction

⚡Breakout order strategy:

1. Long trigger: Price breaks above and stabilizes at 1.322 (Reason: Breaks through the 1H triangle upper boundary and recent minor high resistance)

Entry: 1.322-1.325

Stop loss: 1.305 (Reason: Breaks below the triangle lower boundary and dense support zone)

Target 1: 1.345 (Reason: 4H EMA20 and previous rebound high)

Target 2: 1.365 (Reason: Resistance at the February 18 high)

2. Pullback to add long trigger: Price retraces to the 1.305-1.308 zone (Reason: 1H EMA50 support and dense buy orders)

Entry: 1.305-1.308

Stop loss: 1.295 (Reason: Breaks below recent strong support platform)

Target 1: 1.322 (Reason: Triangle upper boundary and breakout level)

Target 2: 1.345

🛡️Trade management:

- Position size suggestion: Light position (Reason: Unclear direction, belongs to a left-side battle or breakout follow-up)

- Execution strategy: If long trigger is hit, take profit at Target 1 by reducing 50%, and move stop loss to entry price. If the price cannot quickly move away from the cost zone (e.g., not reaching 1.315 within 1 hour), consider exiting early.

Deep logic: The current price is declining but open interest remains stable, indicating it’s not major players continuously selling off, more like bulls and bears battling at a critical point. Negative funding rates suggest bears are favored, but also set the stage for short covering. The 1H volume has shrunk to an extreme, signaling a potential reversal. Pay close attention to the test of 1.322; a volume breakout will be a clear short-term buy signal. The massive buy orders between 1.301-1.310 form a short-term defense line; if unbroken, a rebound is expected.

Check real-time market 👇 $DOT

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