• Dogecoin price remains just a hair above a central capitulation zone.
  • If buyers don’t step in, then DOGE could have a dramatic fall into single digits.
  • Bulls and bears are apprehensive, given the current trading behavior.

Dogecoin price action has been at a make-or-break trading range for over a month. However, flash-crash south is up ahead if bulls cannot support Dogecoin over the next two weeks.

Dogecoin price faces a 44% loss if near-term support fails

Dogecoin price is close to a significant drop. The red shaded zone on the chart below identifies a price range where the Volume Profile becomes extremely thin between the $0.08 and $0.16 value areas. Understanding how Volume Profile is interpreted can help shed light on how close Dogecoin is to a significant capitulation move.

The Volume Profile is the horizontal measurement of volume at a particular price. It identifies price levels where the most buying and selling has occurred – where bulls and bears have battled the most to determine market direction. Levels that stick out and are longer than the majority of the Volume Profile are called High Volume Nodes.

High Volume Nodes represent critical levels of support and resistance. Therefore, in technical analysis, analysts interpret the movement away from high-volume nodes as an event of critical importance. This is especially true if there is a wide-open space between one high-volume node and the next.

The expected behavior that Dogecoin price would experience if there were a daily close between $0.15 to $0.16 would be a swift move south. Empty areas in a volume profile act as a kind of vacuum and ‘suck’ and price to the next high volume node. For Dogecoin, that would mean a return to the $0.08 value area.

DOGE/USDT Daily Ichimoku Chart

However, bears have been given multiple opportunities over the past month to push Dogecoin price into a significant collapse – but have been unable or unwilling to do so. Hodlers have not capitulated yet; bears are anxious about opening a new short near these lows, and bulls on the sideline are nervous about buying a dip that could dip even more.

If Dogecoin price moves to a daily close above the Kijun-Sen and Tenkan-Sen at $0.19, buyers will likely pour into Dogecoin and begin a rally towards the $0.25 value area.

 


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Zilliqa price poised for a rally on positive on-chain data; bullish technical indicators

Zilliqa price poised for a rally on positive on-chain data; bullish technical indicators

Zilliqa price has broken above a falling wedge pattern, indicating a shift in market structure from bearish to bullish. Bullish divergence on the RSI and the Awesome Oscillator indicators signal a potential reversal and upward movement in ZIL price in the coming days.

More Cryptocurrencies News

MATIC sets for a rally as Polygon Foundation confirms the migration date

MATIC sets for a rally as Polygon Foundation confirms the migration date

Polygon (MATIC) price has broken above a falling wedge pattern, indicating a shift in market structure from bearish to bullish. The Polygon Foundation officially announced on Thursday that September 4 is the migration date for MATIC to POL.

More Polygon News

Top 10 crypto market movers as Bitcoin and Ethereum hold steady ahead of $1.8 billion options expiry

Top 10 crypto market movers as Bitcoin and Ethereum hold steady ahead of $1.8 billion options expiry

Bitcoin and Ethereum hold steady above $64,000 and $3,400 as $1.8 billion in options expire on Friday. WazirX hack of $230 million potentially linked to Lazarus Group ushers correction in Shiba Inu, among other assets. 

More Cryptocurrencies News

Bitcoin Weekly Forecast: Will BTC continue its bullish momentum?

Bitcoin Weekly Forecast: Will BTC continue its bullish momentum?

Bitcoin price increased by 5.5% this week until Friday after breaking above a descending trendline. Currently, it is trading slightly higher by 0.23% at $64,166. By Thursday of this week, U.S. spot Bitcoin ETFs observed cumulative positive inflows totaling $861.50 million.

More Bitcoin News

Bitcoin: Will BTC continue its bullish momentum?

Bitcoin: Will BTC continue its bullish momentum?

Bitcoin (BTC) price increased by 5.5% this week until Friday after breaking above a descending trendline. Currently, it is trading slightly higher by 0.23% at $64,166. By Thursday of this week, U.S. spot Bitcoin ETFs observed cumulative positive inflows totaling $861.50 million. On-chain data indicates oversold conditions for BTC, suggesting a possible market bottom.

Read full analysis

BTC

ETH

XRP