DOLO/USDT Long Trade Setup
Technical Rationale
Double Bottom / Range Support: The price has found strong demand in the $0.028 – $0.031 zone (indicated by your red box). This area has served as a "floor" twice, suggesting a potential trend reversal.
Horizontal Breakout: You have a blue line marked at approximately $0.0394. The current price of $0.04093 shows a successful daily close above this resistance, which now flips to support.
Momentum: The asset is up +18.29% on the day, indicating strong buying pressure and a shift in sentiment.
Entry Price $0.04093 Current Market Price (or on a retest of $0.0394).
Stop Loss (SL) $0.03096 Below the recent swing low and red support zone.
Take Profit (TP) $0.07142 Targets the local peak from November/December.
Risk/Reward ~3.06 A very healthy ratio for a daily timeframe trade.
Execution Strategy
The "Buy Now" Approach: Since the price is already trading above your blue resistance line, momentum is currently on your side.
The "Retest" Approach: For a safer entry, you could wait for a slight pullback to the $0.0394 – $0.0400 area to confirm it holds as support before moving higher.
Risk Management: Ensure this trade follows your standard position sizing. With a Stop Loss roughly 24% away, you may want to lower your leverage (if trading perps) or position size to manage the total risk to your portfolio.
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