【$DOT Signal】Follow-up Breakout + Short Squeeze Continuation

$DOT 1H timeframe is currently consolidating at a high level after a violent surge, with the price strongly trading sideways around 1.51. The 4H timeframe has a massive bullish candle breaking through all previous resistance, indicating a trend has shifted to bullish. Current open interest (OI) remains stable, and after a significant rally, the price refuses to undergo a deep correction. This is a typical sign of a short squeeze continuation, with major players still active in the market.

🎯Direction: Long (Long)

🎯Entry/Order: 1.508 - 1.512 (Near current price)

🛑Stop Loss: 1.485 (Break below the strong 1H support zone)

🚀Target 1: 1.560 (Previous high psychological resistance)

🚀Target 2: 1.620 (Extension target based on ATR measurement)

🛡️Trade Management:

- Position: Light. This is a chasing rally trade with higher risk, so control your position size carefully.

- Execution Strategy: When the price reaches 1.560, reduce your position by 50%, and move the stop loss of the remaining position up to the entry price of 1.512 to ensure this trade is not a loss. Hold the remaining position for higher targets; if the price retraces to 1.512, exit automatically.

(Depth Logic: The 1H RSI is as high as 89.69, severely overbought, but this is normal in a short squeeze market and should not be used as a basis for shorting. The order book shows buy-side depth (bid_ask_ratio_depth=1.45) far thicker than sell-side, with dense support below. The 4H volume has surged significantly, indicating a genuine breakout. Market logic suggests ‘price rising combined with open interest,’ and stable OI indicates it’s not just a short squeeze from shorts, but also bullish players supporting and pushing the price. The core strategy is to bet on a second surge after a strong sideways consolidation, with a firm stop loss. )

View real-time market 👇 $DOT

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