• Dogecoin price recently dropped below a triple-bottom pattern on its Point & Figure chart.
  • The last uptrend angle warns of a steep and rapid move south if buyers don’t come in.
  • Current weakness exacerbated by trading below the 2021 Volume Point Of Control

Dogecoin price shows signs of disappointing bulls who were anticipating an imminent breakout towards $0.50. Instead, sellers were able to take control and push Dogecoin below a triple-bottom, threatening a return to price levels last traded in April 2021.

Dogecoin price finds sellers in temporary control, massive sell-off ahead if buyers fail to support Dogecoin

Dogecoin price has a genuine threat of an imminent flash crash. The bear flag pattern on the $0.01/3-box reversal Point and Figure chart shows just how close Dogecoin is to entering into a capitulation move. A Fibonacci expansion drawn from $0.34 to $0.19 shows the 161.8 % Fibonacci expansion level is at $0.10. Sellers may look to capitalize on any weakness that sees Dogecoin drop below $0.19 to target $0.10. However, if the current column of Os were to retrace all the way to $0.19, and dip lower to $0.17, then a Spike Pattern will develop, giving bulls an opportunity for a fast mean reversion trade setup.

On the long side of the market, there is a hypothetical bullish trade opportunity for Dogecoin price. The entry would be a buy stop order at $0.34, a stop loss at $0.30 and a profit target at $0.50. The entry is based on the break of a triple-top that would develop if a new X-column was pushed to the most recent swing highs. However, if some range trading goes on in the interim and a split triple-top develops, the entry remains valid.

DOGE/USDT Daily Ichimoku Chart

The hypothetical long trade setup will be invalidated if Dogecoin price drops below the $0.18 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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Assessing the possibility of Bitcoin price crash to $20,000 after US NFP rises to 517,000

Assessing the possibility of Bitcoin price crash to $20,000 after US NFP rises to 517,000

The United States unemployment rate for January came in at 3.4% which is lower than forecast of 3.6%. The Nonfarm Payrolls (NFP) data shows that 517,000 jobs were added in January, which is much higher than the expected 185,000.

More Bitcoin News

Cardano price could get help from US job report to clean up winter losses, 31% gains on the horizon for ADA

Cardano price could get help from US job report to clean up winter losses, 31% gains on the horizon for ADA

Cardano (ADA) price has succeeded in breaking above key levels near $0.39 as the pivotal historical level at $0.388 and the 200-day Simple Moving Average (SMA) all got broken to the upside with the Federal Reserve meeting on Wednesday.

More Cardano News

Ethereum Classic Price Prediction: Is ETC safe in this bullish channel?

Ethereum Classic Price Prediction: Is ETC safe in this bullish channel?

Ethereum Classic (ETC) is set to book a very outright bullish intraday session just hours before the US session kicks in. As the dust is settling for global markets after all major central banks had their say on Wednesday.

More Ethereum Classic News

Bitcoin Weekly Forecast: Nonfarm Payrolls on the radar after Powell’s speech propels BTC higher

Bitcoin Weekly Forecast: Nonfarm Payrolls on the radar after Powell’s speech propels BTC higher

Bitcoin (BTC) price is at an inflection point as it continues to rally amid multiple sell signals on lower time frames. The Nonfarm Payrolls (NFP) report, including the unemployment rate and average hourly earnings

More Bitcoin News

Bitcoin: Nonfarm Payrolls on the radar after Powell’s speech propels BTC higher

Bitcoin: Nonfarm Payrolls on the radar after Powell’s speech propels BTC higher

Bitcoin (BTC) price is at an inflection point as it continues to rally amid multiple sell signals on lower time frames. The Nonfarm Payrolls (NFP) report, including the unemployment rate and average hourly earnings, is set to be announced on February 3 at 1330 GMT.

Read full analysis

BTC

ETH

XRP