Jonathan Morgan
Independent Analyst
- Dogecoin price fails to hold critical support.
- Bears could easily tip the scale to initiate a flash-crash.
- Oscillator levels hint that downside pressure could be limited.
Dogecoin price is now in the most bearish Ichimoku position since May 2021. Additionally, bears remain in control and look for opportunities to push Dogecoin lower to the $0.18 value area – the final support before total capitulation would occur.
Dogecoin price to test $0.18, successful bears could generate a flash-crash to $0.08
Dogecoin price is extremely bearish with the Ichimoku Kinko Hyo system. All criteria for an Ideal Bearish Ichimoku Breakout entry are fulfilled. Additionally, Dogecoin is trading on top of the final sliver of support within the 2021 Volume Profile. There is no Ichimoku support for Dogecoin between $0.21 and $0.18.
To prevent a likely flash-crash, buyers must support Dogecoin price at the $0.18 value area. The large, red shaded area on the chart represents the price levels from $0.18 to $0.08. Between those two price levels, the 2021 Volume Profile is almost non-existent. This means that if Dogecoin were to drop below $0.18, it would likely get sucked, like a vacuum, lower to the next high volume node at $0.08.
However, Dogecoin has a history of creating extremely bearish positioning and then whipsawing bears into a massive trap. So while the Relative Strength Index and the Composite Index both show that some downside pressure could continue, the Optex Bands oscillator is the critical tool to watch. The Optex Bands are currently trading just a hair above the extreme oversold levels – indicating a bounce could occur at any moment.
DOGE/USDT Daily Ichimoku Chart
For bulls to invalidate any near-term or future bearish forecasts, they will need to close Dogecoin price above the Ichimoku Cloud. Ideally, buyers would need to close Dogecoin at or above the $0.28 level. If that occurs, Dogecoin will enter an Ideal Bullish Ichimoku Breakout entry, with a likely target in the $0.50 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
Editors’ Picks
Dogecoin price bullish outlook intensifies as DOGE turns 10
Dogecoin price has sustained the bullish outlook since October 18, when the broader market turned green, leading meme coins in an uptrend, which is no mean feat. The 65% climb has ushered the dog-themed cryptocurrency to its tenth birthday since its official launch on December 6, 2013.
Bitcoin-based meme coin ORDI price action wobbles after 1,100% rally
The Bitcoin-based BRC-20 meme coin, which had people confused as being an actual valuable token, is now slowly creeping up to that status. ORDI price rise over the past couple of days has been astonishing, and with BTC driving the price and crossing $44,000, ORDI is also gaining rapidly. But not for long.
Arbitrum price veers as hard fork proposal receives 99.84% votes in favor
Arbitrum's price surpassed expectations as the altcoin managed to restrict the fluctuation over the past 24 hours. This is because ARB was forecasted to rally following the result of the proposal to essentially hard-fork the chain.
Bitcoin price hits $44,000 as Coinbase CEO speculates BTC could be key to extending Western civilization
Bitcoin (BTC) price has revisited levels last seen in April 2022, prior to the collapse of the Terra UST ecosystem. Its foray above the $42,000 psychological level has market watchers enthused.
Analyzing potential $30k corrections ahead of BTC ETF approval
Bitcoin has slowed down its 2023 bull rally as it approaches the $37,000 level. After three weeks of consolidating around this level, BTC shows no directional bias whatsoever. Some investors speculate this could be an upward-sloping accumulation that leads to a $40,000 rally.