📉 $DOLO Analysis: Is the Parabolic Run Over?
The massive weekend pump on Dolomite ($DOLO) hit a high of 0.075, but the charts are now screaming "Correction." If you are trading this volatility, here is the technical breakdown you need to see. 👇
1. The 4-Hour Warning Signal ⚠️
The most critical signal right now is on the 4H Chart:
RSI is Overheated: The RSI(6) is sitting at 73.05. Historically, when RSI pushes this high, a cool-off period follows.
The "EMA Gap": There is a massive gap between the current price (0.0646) and the key support level, the EMA 7 (Yellow Line), which is down at 0.0582.
Theory: In crypto, price rarely stays disconnected from its short-term EMAs for long. We often see a "Mean Reversion" where price drops to touch the line.
2. The 1-Hour Breakdown 📉
Resistance Flip: On the 1H timeframe, the price has slipped below the EMA 7 (0.0659). This level is now acting as a ceiling.
Lower Highs: We are seeing a rejection from the 0.075 peak, creating a local downtrend structure.
🧠 My Trade Setup (Bearish Bias)
I am positioning for a pullback to fill the gap on the 4H chart.
Entry Zone: 0.0645 - 0.0650
🛑 Stop Loss: 0.0665 (Strict. If it breaks back above the 1H EMA, the setup is invalid.)
🎯 Target (TP): 0.0580 (This aligns perfectly with the 4H EMA 7 support and the 1H EMA 25).
What do you think? Are we dumping to 0.058 or pumping to 0.080? Let me know in the comments! 💬
