Technical analysis by SupertradeOfficial about Symbol DOT: Buy recommendation (5/26/2025)

As of May 26, 2025, DOT/USDT is showing signs of a potential bullish reversal on the 4-hour chart, forming a strong setup for upward movement. Key technical levels and chart structures support this bullish outlook.1. Strong Support Zone•Zone: $4.30 – $4.37•This area has acted as a major support, where buyers previously stepped in, leading to strong upward moves. Currently, the price has rebounded from this support zone, suggesting renewed bullish pressure.•A bounce from this zone with increasing volume confirms the strength of this level and validates it as a demand zone.2. Bullish Entry Setup•The entry appears to be positioned slightly above the support zone, near $4.60.•The risk-to-reward ratio is favorable (~2.7), indicating a well-placed setup for swing traders.•A small stop-loss (~6.36%) below the support at $4.30 protects against a false breakdown.3. Key Resistance and Target Levels•TP1 / Recent Resistance: $4.93This level marks a recent swing high and minor resistance. A breakout above this would confirm short-term bullish continuation.•TP2 / Major Resistance: $5.38This is the major resistance level and final take-profit zone. It aligns with a previous market top, and its breach could lead to further bullish continuation into a higher timeframe breakout.4. Projected Path and Price Action•The chart outlines a bullish projection path, anticipating higher lows and higher highs forming a stair-step rally.•This dotted path suggests a bullish trend structure with gradual momentum buildup.•Buyers may continue pushing the price upward through TP1 toward TP2 in the coming sessions, especially if macro conditions or Bitcoin price action remain favorable.5. Market Structure & Candlestick Behavior•The market recently transitioned from a short-term downtrend into a consolidation phase.•Bullish candlestick formations around the support zone imply accumulation.•The recent bullish engulfing near the support further confirms buyer dominance and a potential trend reversal.6. Risk Management and Outlook•Stop-Loss: Below $4.30 to manage downside risk.•Target Zones: $4.93 (TP1), $5.38 (TP2).•A break below $4.30 would invalidate the bullish thesis and suggest caution.•As long as DOT remains above the $4.37 zone, the bullish scenario remains intact.ConclusionDOT/USDT is currently in a bullish setup on the 4-hour chart with a high-probability reversal from the support zone. Traders may look for confirmation candles and volume support to enter long positions with TP1 at $4.93 and TP2 at $5.38. Risk remains contained below the $4.30 level.