DOT Preparing for a Potential Relief Wave from Demand Zone

DOT continues to trade inside a well-defined falling wedge that has been guiding the market since early November. Price recently rejected from the mid-range and is now heading toward the lower boundary of the wedge. This area has acted as a liquidity pocket and a reaction zone several times in the past.

If price reaches the lower trendline and shows a stable reaction, a clean relief wave can start from this point. The next major objectives sit at two zones. The first is the mid-channel resistance near two point one seven. The second is the broader bearish rejection zone around two point nine where price failed multiple times during previous attempts.

A breakdown of the lower channel support will invalidate this bullish scenario and may open space toward deeper lows. The reaction near the wedge floor will decide the next directional leg.

This setup focuses on market structure, trendline behavior, channel dynamics, and liquidity sweeps. It remains a reaction-based outlook rather than a prediction.

Trade management and risk control remain essential in this environment.