Jonathan Morgan
Independent Analyst
- 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.
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