【$DOT Signal】Long - 1H pullback confirmation, main force clearly defending the market

$DOT On the 1H timeframe, after experiencing a 29% violent surge, the price is consolidating strongly in the 1.627-1.665 range. The 4H timeframe has broken through the long-term downtrend line, confirming a trend reversal. Currently, the 1H candlestick is pulling back to test the EMA20( at 1.562), and the order book depth (1.626-1.636) is far thicker on the buy side than on the sell side, indicating that the main force is defending the market and rejecting a deep correction. Open interest remains stable, funding rate is only 0.01%, with no overheating risk. This is a typical strong consolidation, building momentum for the next rally.

🎯Direction: Long (Long)

🎯Entry/Order: 1.630 - 1.635 (Reason: 1H EMA20 support zone & dense buy orders in the order book)

🛑Stop loss: 1.615 (Reason: Break below the previous low of the 1H consolidation platform & the start of the 4H bullish candle)

🚀Target 1: 1.694 (Reason: Previous high resistance & 1.618 Fibonacci extension level)

🚀Target 2: 1.752 (Reason: 4H previous high & 2.618 Fibonacci extension level)

🛡️Trade management:

- Position suggestion: Standard position (Reason: 4H trend reversal confirmed, 1H structure clear, excellent risk-reward ratio)

- Execution strategy: After reaching 1.694, reduce position by 50% to lock in profits, and move the remaining stop loss up to the entry price of 1.635. If the price strongly breaks through 1.694, target the remaining position towards 1.752.

Depth logic: After a 29% surge, open interest remains stable rather than declining, indicating this is not just a short squeeze, but new bullish funds are entering and holding positions. The 1H RSI( at 67.55) is healthy after dropping from overbought territory, providing room for another upward move. The order book depth imbalance reaches 14.44%, with buy orders stacked heavily, showing strong support below and active short covering and long accumulation. This is a typical “sideways instead of falling” pattern, with a breakout imminent.

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