The next major trading targets to expect a reaction for DOT will be the Fair Value Gaps (FVGs). If you learn about market maker theory you will find that the market likes to target liquidity at zones where price spent relatively little time on higher timeframes, where price traded either up or down in a single bar without revisiting that area.
I've drawn 3 FVGs above from a daily timeframe and 1 below. These are major areas where the market maker has an incentive to take price to take liquidity since price "inefficiently" traded through that area. The more FVGs in an area, the higher the incentive the market maker has to take price to that general direction, hence the market maker has a greater incentive to take DOT much higher as you can see on the chart the 3 zones above:
FVG Zone 1: $27
FVG Zone 2: $35
FVG Zone 3: $44
I'm bullish on DOT but don't discount that it can come back to $20 (ofc depending on what BTC does), but as long as BTC continues to trend higher, we will see DOT take out the purple boxes in fairly quick order over the next weeks. You should be aware that price often reacts when we get to these areas and either consolidates or retraces temporarily before continuing in that direction as smart money uses these zones as take profit areas or before reversing (if market becomes bearish).
FYI - you can use these FVGs on any timeframe, but the higher the timeframe, the more significant of a zone it becomes. Also, should be noted, the macro 618 is around $39 and I expect at least a reaction when we get there as well.
Knowing that there are significant fundamentals coming into play for DOT, I do expect eventually that it will hit new ATHs hopefully by June/July but we will see as there are other factors at play globally.
I've drawn 3 FVGs above from a daily timeframe and 1 below. These are major areas where the market maker has an incentive to take price to take liquidity since price "inefficiently" traded through that area. The more FVGs in an area, the higher the incentive the market maker has to take price to that general direction, hence the market maker has a greater incentive to take DOT much higher as you can see on the chart the 3 zones above:
FVG Zone 1: $27
FVG Zone 2: $35
FVG Zone 3: $44
I'm bullish on DOT but don't discount that it can come back to $20 (ofc depending on what BTC does), but as long as BTC continues to trend higher, we will see DOT take out the purple boxes in fairly quick order over the next weeks. You should be aware that price often reacts when we get to these areas and either consolidates or retraces temporarily before continuing in that direction as smart money uses these zones as take profit areas or before reversing (if market becomes bearish).
FYI - you can use these FVGs on any timeframe, but the higher the timeframe, the more significant of a zone it becomes. Also, should be noted, the macro 618 is around $39 and I expect at least a reaction when we get there as well.
Knowing that there are significant fundamentals coming into play for DOT, I do expect eventually that it will hit new ATHs hopefully by June/July but we will see as there are other factors at play globally.
Comment:
Adding the Monthly FVG in orange at $32 - this is a very significant area considering it's a much higher monthly level that price has not revisited yet:
