Moving on to the technical analysis for DOT, we will start from the weekly time frame, the price of DOT has very correctively approached the weekly time frame, and has been rejected off it. It has also made a famous pattern called head and shoulder and price has almost completed that. Now when these famous patterns are formed, they are very likely manipulated. A head and shoulder pattern according to the textbook shows bearish intention, so the majority would be expected a sell of this but as mentioned before, the institution tends to manipulate such patterns, so it’s very likely that they might push the price of DOT towards the upside and take out the liquidity and then depending on the condition, the next move of the price can be anticipated.
Moving down one Time frame, which is the daily time frame, the price is very clearly breaking structures to the downside, so this makes the order flow bearish. Now if we observe, after every Lower Low, the price is making Lower Highs and recently the price has just made a lower low so now according to the market structure, the next lower high can be anticipated which is to the upside so this gives a bullish bias again.
Lower Time Frame – DOT
Now moving down to the 4 Hour time frame, the price within the structural range has shown some great confluences which overall shows that price may push to the upside. First talking about the structure, the price was pushing to the downside, but recently the price took out the sell-side liquidity and showed the change of character which according to Wyckoff shows bullish intentions. Now moreover the price to both sides created liquidity. The top side was recently cleared but the downside still remains intact, and it’s very possible that after taking out the below liquidity, it might push to the upside. Now talking about the targets, the order block which is at $22.03 remains unmitigated, which may drive the price upwards.
Moreover, as there was some inducement and imbalance as well just below that order block, it’s very likely that that order block might hold or price may even react to it for some time. The first order block should be around $20.72 as that’s equal to highs and the price may stop hunt and fall. Talking about the invalidation point, in case if price violates the structural low, this whole scenario would get invalidated and other biases should have opted.
