【$DOT Signal】Pullback to buy + 1H level retest confirmation, betting on a second surge

$DOT The 1H level experienced a violent rally of over 20% yesterday and is now in a healthy pullback and consolidation phase. The price is oscillating around 1.597, with the 1H EMA20 (1.576) providing dynamic support. The 4H level has confirmed a breakout of the long-term downtrend line, signaling a trend reversal. Currently, the 1H RSI (58.48) has fallen from the overbought zone to neutral, gathering strength for another push upward. The order book shows deep buy orders in the 1.58-1.59 range, indicating strong institutional support.

🎯 Direction: Long (Long)

🎯 Entry/Orders: Enter in batches within the 1.585 - 1.595 range (Reason: Rebound from 1H EMA20 support and the first consolidation platform after yesterday’s breakout)

🛑 Stop-loss: 1.565 (Reason: Break below the 4H large bullish candle’s starting point at 1.566 and ATR (0.073) lower band, trend may fail)

🚀 Target 1: 1.660 (Reason: Previous high resistance and 4H Fibonacci 0.618 retracement level)

🚀 Target 2: 1.750 (Reason: Near yesterday’s high, also the 4H wave 1.618 extension level)

🛡️ Trading Management:

- Position suggestion: Light position (Reason: Significant intraday rally, high volatility, risk control needed)

- Execution strategy: Use staggered entry, average price around 1.59. When reaching 1.660, reduce position by 50% to lock in profits, and move the stop-loss of the remaining position up to the entry price of 1.590. If the price cannot hold above 1.630 and turns downward, consider exiting early.

Depth logic: The 4H triple bullish candles with volume breakout, open interest (OI) remains stable, not significantly decreasing during the pullback, indicating bulls are not panicking out. This is a strong consolidation. Funding rate is only 0.01%, with no overheat short-squeeze risk. The 1H buy/sell ratio in the latest candle has risen to 0.57, showing buy orders are re-accumulating during the correction. Combined with order book depth, there are over 120,000 buy orders stacked at 1.58, forming a solid defense line. This is a typical “rapid rise - slow decline - rise again” bullish continuation pattern.

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