|

Dogecoin price could mudslide into $0.02 if these technicals are correct

  • DOGE price has printed a large bearish engulfing candle on the daily chart.
  • Dogecoin produced a classic ramping pattern on the volume indicator.
  • Invalidation of the bearish downtrend is a breach of $0.115

Dogecoin price is set to destroy long-term investors' morale in the coming weeks.

Dogeprice to $0.02

Dogecoin price could decline in free-fall action as the technicals indicate an unfolding wave three within the bearish downtrend. The bears managed to print a large bearish engulfing pattern on May 11th, which is now the largest candle within the entire downtrend. Traders reading the bullish hammer on the 12th as a bullish entry signal should consider zooming out and re-evaluating the macro trend.

Dogecoin price shows a classic ramping pattern in bearish favor on the volume indicator. The lack of volume coming in after the hammer on the 12th also hints that the current uptrend is more than likely a corrective structure to connect the next declining impulse. If this Elliot Wave thesis is correct, the bears could finally breach the historical trend channel, which analysts have warned of for several months. The strength of the current bearish impulse could send prices to $0.02 in the coming weeks.

TM/DOGE/5.14.22

DOGE/USDT 1-Day Chart

Invalidation of the current downtrend is a breach at $0.115. If the bulls can breach this level, then the DOGE price could rally back to $0.14 and $0.16, resulting in up to a 100% increase from the current Dogecoin price

Tm/DOGE5/14/22

DOGE/USDT 1-Day Chart

Author

Tony M.

Tony M.

FXStreet Contributor

Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.

More from Tony M.
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

Ethereum Price Forecast: EF outlines ways to solve growing state issues

Ethereum price today: $2,920. The EF noted that Ethereum's growing state could lead to centralization and weaken censorship resistance. The Stateless Consensus team outlined state expiry, state archive and partial statelessness as potential solutions to the growing state load.

Top 3 Price Prediction: Bitcoin, Ethereum, Ripple – BTC, ETH and XRP correction slide as BoJ rate decision weighs on sentiment

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are extending their correction phases after losing nearly 3%, 8%, and 10%, respectively, through Friday.

Top Crypto Losers: Pump.fun, Pudgy Penguins, and Hyperliquid extend bearish streak

Pump.fun, Pudgy Penguins, and Hyperliquid lose ground in an extended bearish streak, recording double-digit losses this week. The surprise drop in the November US CPI to 2.7%, beating expectations of 3.1%, fueled a rally in the stock market.

Bitcoin, Ethereum, XRP face sharp volatility as US posts lowest inflation rate in years

Bitcoin, Ethereum and XRP saw increased volatility following the US CPI report for November. The US headline inflation dropped to 2.7% while core CPI fell to 2.6%, its lowest level since March 2021.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Bitcoin: Fed delivers, yet fails to impress BTC traders

Bitcoin (BTC) continues de trade within the recent consolidation phase, hovering around $92,000 at the time of writing on Friday, as investors digest the Federal Reserve’s (Fed) cautious December rate cut and its implications for risk assets.