DOTUSD Elliott Wave Analysis – TradingLounge Daily Chart
Polkadot/ U.S. Dollar (DOTUSD) Daily Chart Analysis
DOTUSD Elliott Wave Technical Outlook
Function: Trend Following
Mode: Motive
Structure: Impulse
Position: Wave 2
Directions for Higher Degrees: Anticipating Wave 3
Invalidation Level: Critical breach under wave 2 support
Polkadot (DOTUSD) Daily Trading Strategy
DOTUSD completed its initial bullish phase (wave I) at a top of 5.407. It then corrected in a standard ABC formation during wave II. The wave C correction appears to have bottomed at 3.737, which closely aligns with the 0.618 Fibonacci retracement level calculated from wave I (3.945). This confluence suggests a likely start of wave III, often marked by strong bullish price action. A sustained move above the 4.40 resistance zone, referred to as the Bullish Confirmation Level, would confirm that wave II has ended and wave III has begun.
Trading Strategies
Strategy
✅ Swing Traders (Short-Term)
Entry: Initiate long positions upon a confirmed breakout above 4.40, confirming wave III.
Risk Management:
🟥 Stop Loss: Place below 3.30 to manage downside risk effectively.
DOTUSD Elliott Wave Analysis – TradingLounge H4 Chart
Polkadot/ U.S. Dollar (DOTUSD) 4-Hour Chart Analysis
DOTUSD Elliott Wave Technical Outlook
Function: Trend Following
Mode: Motive
Structure: Impulse
Position: Wave 2
Direction for Higher Degrees: Preparing for Wave 3
Invalidation Level: Drop below wave 2 threshold
Polkadot (DOTUSD) 4-Hour Trading Strategy
DOTUSD's initial wave I surge peaked at 5.407 before reversing in a corrective ABC pattern during wave II. The final leg, wave C, likely concluded near 3.737, a level that matches the key 0.618 Fibonacci retracement of wave I at 3.945. This pattern setup suggests that the asset may now be transitioning into wave III, known for stronger price movements. A confirmed break above the 4.40 resistance mark will validate the end of wave II.
Trading Strategies
Strategy
✅ Swing Traders (Short-Term)
Entry: Only enter long trades once price action exceeds 4.40.
Risk Management:
🟥 Stop Loss: Set just below the 3.30 support level for optimal risk control.
Technical Analyst: Malik Awais
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